Fed's Bullard Spooks Stocks with Talk of Deflation

The Dow Jones Industrials average had another sea saw session today starting high, dipping down to worse than minus 100 before closing with a moderate loss.  Good news on earnings from Exxon/Mobil and optimism about Europe's economy propelled stocks to an early advance.  Around noontime, however, St. Louis Fed Presiddent James Bullard warned of deflation which sent stocks tumbling.  A decline in prices can put pressure on liquity and he suggested the Fed may have to intervene by buying Treasuries.  The Dow closed down 30 points.