Stocks Whipsaw In Early Action

Stocks have been trading in and out of positive territory this morning following two days of intense selling, as long investors look for bargains in beaten-up groups and shorts continue to point to troubles in the Eurozone which could lead to a slowing world wide recovery or double dip recession.

The Dow is down 40, the Nasdaq is down 29 and the S&P 500 is down 7. All three were higher upon the open this morning.

Speaking at an event last night sponsored by the Woodrow Wilson International Center for Scholars, Federal Reserve Chairman Ben Bernanke said he continues to see the U.S. economy recovering, although it won't be strong. Bernanke said the slow economic recovery will keep unemployment rates high.

Commenting on interest rates, Bernanke said the Fed won't be able to wait for a recovery in jobs before raising interest rates.

Bernanke said the Fed is monitoring the economic crisis in Europe, and believes leaders their have taken the right steps to deal with the problems.

News in Europe was mixed today with Germany unveiling nearly $100 billion in budget cuts, but the U.K. getting a warning from rating agency Fitch that fiscal challenges warrant a faster pace of deficit reduction.

After falling yesterday following the introduction of its iPhone 4, Apple (Nasdaq: AAPL) is up 1 percent this morning.

McDonald's (NYSE: MCD) sales continue to outpace expectations as cash-strapped consumers flock to the restaurant chain's value menu. The company said global same store sales rose 4.8% in May. In the U.S. sales rose 3.4% and the company saw a 5.7% jump in Europe and a 3.8% rise in Asia Pacific/Middle East/Africa. McDonald's said foreign currency translation will have a negative impact on net income per share for the full year, although the comapny sees minimal to no effect from foreign exchange in Q2.

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