Stocks gave back early gains Wednesday as traders wrestled with the latest Fed report and promising data from the labor and services sectors.

The Dow Jones Industrial Average finished down 9 points at 10397. The S&P 500 rose fractionally to 1119, and the Nasdaq slipped by less than a point to 2281.

A slight falloff came after the Federal Reserve released its Beige Book, a regional look at economic activity. Much of this improvement seems to be driven by the inventory rebound. However, businesses do not seem to be building for an aggressive expansion, said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com, adding that the snowy weather seems to be holding back economic growth in the short term.

Stocks had risen earlier in the session on a better-than-expected report on job losses from Automatic Data Processing. The payroll giant said the private sector lost 20,000 jobs in February. Economists surveyed by Dow Jones had expected to see a loss of 50,000 jobs.

Meanwhile, the ISM non-manufacturing index showed the service sector expanded more than expected. The index rose to 53.0, from 50.5, topping expectations for a more modest rise to 51.0.

Also boosting market confidence, the Greek government announced Wednesday that it will take new austerity measures totaling 4.8 billion ($6.53 billion) to ensure it can meet its deficit-cutting pledge this year, including steep cuts in civil service salaries and entitlements. Greece will also raise its sales tax by two percentage points, a government official said Wednesday.

The measures helped prop up the euro against the dollar, which was unchanged against the yen. Crude-oil prices climbed $1.19 to $80.87, while gold futures also rose, by $5.90 to $1,143.30 an ounce. Treasurys edged down with the 10-year note off 3/32 to yield 3.621%.

The week's pick-up in mergers and acquisitions continued.

Pfizer edged down in early trading after announcing with partner Medivation that their investigational Alzheimer's treatment unexpectedly failed to meet cognition and global functioning efficacy goals in late-stage trials. Pfizer is also reportedly planning to bid as much as $4.1 billion for German generic-drug company Ratiopharm, according to a report from Bloomberg.

Software company Novell shot up on a bid to be bought by hedge fund Elliott & Associates for $1 billion, or $5.75 a share, that the company said it is reviewing. And an investment group led by J.P. Morgan Asset Management and Water Asset Management said it is buying SouthWest Water for $275 million, sending SouthWest's shares up 49% in early trading.

Health-care stocks were also in focus after President Barack Obama said he would consider four Republican proposals.

For a detailed rundown on Wednesday s trading session see our market story.

Winners
Clean energy-based funds did well with the Claymore/MAC Global Solar Energy Index ETF and iShares S&P Global Clean Energy Index Fund gaining 3.6% and 2.7%, respectively.

Losers
The iShares Dow Jones US Pharmaceuticals Index Fund and SPDR S&P Biotech ETF fell 1.7% and 2.2%, respectively, as pressure to pass health-care reform and a failed biotech trial prompted selling in the space.

Thursday s Notebook

Earnings and Conference Calls
Alaska Communications Systems Group, AmBev - Companhia de Bebidas Das Americas, AMN Healthcare Services, Angiotech Pharmaceuticals, ArcSight, Atlantic Tele-Network , Babcock & Brown Air, Bio-Reference Laboratories, Bio-Reference Laboratories, Ciena, Cohen & Company, Consolidated Communications, Cornerstone Therapeutics, Crown Media Holdings, Cumulus Media, Del Monte Foods, Depomed, Dex One, Dot Hill Systems, Double Eagle Petroleum and Mining, Emergent Biosolutions, Entravision Communications, Equity One, FiberTower, Fuel Systems Solutions, Fuel Tech, Genesco, Gerber Scientific, H&E Equipment Services, HealthTronics, Koninklijke Ahold, LeMaitre Vascular, Marvell Technology Group, Mentor Graphics, Methode Electronics, Move, Nash Finch, Natus Medical, Ocwen Financial, Onvia.com, Osteotech, PC-Tel, PDI, Penwest Pharmaceuticals, Perficient, Petroleum Development, Primedia, Relm Wireless, Ritchie Bros. Auctioneers, Satcon Technology, Steinway Musical Instruments, Sun Healthcare Group, Suntech Power Holdings, SXC Health Solutions, TD Banknorth, Teekay, The Cooper Companies, Toronto Dominion Bank, Trans World Entertainment, U.S. Physical Therapy, Union Drilling, Urban Outfitters, US Ecology, Wendy's / Arby's Group, West Marine, Western Refining, Winthrop Realty Trust

Economic Data
6:00 a.m. Monster Employment Index
8:30 a.m. Jobless Claims
8:30 a.m. Productivity and Costs
9:00 a.m. RBC CASH Index
10:00 a.m. Factory Orders
10:00 a.m. Pending Home Sales Index
10:30 a.m. EIA Natural Gas Report
4:30 p.m. Fed Balance Sheet
4:30 p.m. Money Supply