U.S. stocks reclaim bulk of day-ago losses

(MarketWatch) -- U.S. stocks ended higher on Wednesday, as a successful sovereign debt auction in Portugal helped ease concerns about Europe, but with gains capped after the Federal Reserve confirmed the U.S. economy is slowing.

In its survey by 12 regional banks, the Fed reported conditions mixed or decelerating in five regions and growing at a moderate pace in five. Read more about Fed's Beige Book.

In Ohio, President Barack Obama argued for giving tax cuts to Americans making $250,000 or less, and against continuing tax cuts for wealthier Americans, saying the country can't afford the $700 billion price tag.

The Dow Jones Industrial Average (DOW:DJIA) rose 46.32 points, or 0.5%, to end at 10,387.01, about 40 points shy of returning to positive for 2010.

Twenty-four of its 30 components rose, with aluminum giant Alcoa Inc. (NYSE:AA) paving the gains, up 2%.

Hewlett-Packard Co. (NYSE:HPQ) fell the most among the blue chips, losing 2.8% after UBS AG downgraded the computer manufacturer from buy to neutral. UBS also cut Intel Corp. (NASDAQ:INTC) , with the chip manufacturer off 1.2%. (more)