Stocks bounce around as the debt debate drags on

Stocks are swinging between gains and losses as investors try to guess whether debt standoff in Washington will be resolved.

Stocks plunged early Friday after the government said that the economy grew at its weakest pace since the recession ended.

Traders already were on edge about a stalemate between lawmakers that threatens to push the nation into default for the first time. The Treasury says it might run out of cash after Aug. 2.

Major indexes recovered some losses by midday as a debt deal appeared more likely.

Just before noon, the S&P 500 index is down a point, or 0.1 percent, at 1,300. The Dow Jones industrial average is down 33, or 0.3 percent, at 12,207. The Nasdaq composite index is up 5, or 0.2 percent, at 2,771.