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It was a choppy session as investors found it hard to decide whether to buy or sell. In the end the Dow and the S&P 500 were little changed. But the Nasdaq rallied close to a full percent - thanks to strong chip stocks. Federal Reserve Chairman Ben Bernanke added to a skittish tone. He said fellow policymakers were worried about the long-term outlook for inflation but added, a return to the heady inflation days of the 1970s was unlikely. Financials were mixed after Standard and Poor's downgraded two bond insurers. But Lehman Brothers limited some of the fallout. An upgrade by Merrill Lynch and word a major bond investor was snapping-up Lehman debt helped there. Bond insurer Ambak tumbled 17 percent and MBIA was down almost 16 percent. Meantime - Lehman Bros. rallied roughly 2 6 percent. The picture was brighter outside of the financials. The large U.S. services sector grew in May -- and at the same time private companies added to their ranks, according to a payroll company. And a bigger than expected revision to first quarter productivity growth also added to optimism ahead of Friday's key jobs report. Oil prices saw another sharp pullback. Bulging gasoline supplies amid falling demand kept the pressure on crude prices. Oil is now $13 below the record high set last month. But energy prices are not falling fast enough for the airlines. United Airlines joined other carriers with plans to ground flights, park planes and cut staff due to high fuel costs. The stock jumped 7 percent on the news. Across the Atlantic, investors pared exposure to the oil sector as prices roll back. European stocks fell to their lowest close in six weeks - with more than one percent losses in Paris and London. Conway Gittens, Reuters.