* Trading volume lower than usual due to holidays, snowstorm
* Hertz stock up on Icahn purchase report
* Indexes up: Dow 0.2 pct, S&P 0.1 pct, Nasdaq 0.1 pct
By Angela Moon
NEW YORK, Jan 3 U.S. stocks rebounded modestly
on Friday after Wall Street began the new year with a broad
decline but major stock indexes were on track to end the week
Trading is likely to be volatile with low volume as many
market participants remain out of the office due to the New
Year's holiday-interrupted week and after a snowstorm that
caused more than 2,000 U.S. flight delays and cancellations,
paralyzed road travel, and closed schools and government
Much of the day's focus will be on a number of U.S. Federal
Reserve officials due to deliver speeches, after the Fed
announced in December that it would start tapering its monthly
bond purchases. Chairman Ben Bernanke is scheduled to speak at
2:30 p.m. (1930 GMT) in Philadelphia.
"I don't think Bernanke will say anything market moving
today. The market will stay steady today, gearing up for next
week," which will be filled with economic reports and the start
of fourth-quarter earnings season, said Peter Cardillo, chief
market economist at Rockwell Global Capital.
The Dow Jones industrial average rose 38.52 points or
0.23 percent, to 16,479.87, the S&P 500 gained 1.75
points or 0.1 percent, to 1,833.73 and the Nasdaq Composite
dropped 6 points or 0.14 percent, to 4,137.07.
On their first day of trading in 2014, U.S. stocks suffered
their worst decline since Dec. 11 as investors booked profits in
the wake of the S&P 500's best yearly advance since 1997, with
many of last year's strongest performers down on the day.
"After a first trading day jolt, the market is stabilizing
and, where we are now, it could easily be swayed in either
direction due to lack of attendance from the inclement weather,"
said Andre Bakhos, managing director at Janlyn Capital LLC in
Bernardsville, New Jersey.
"There is a faction of investors that are looking at
yesterday's pullback as an opportunity to enter equities at a
Shares of Hertz rose 1.7 percent to $29.81 after
CNBC reported that activist investor Carl Icahn purchased 30
million to 40 million shares of the car rental business, citing
sources familiar with the situation. Icahn is the target of the
poison pill Hertz put into place Monday, the sources said. They
also noted that Icahn's position is not entirely in common stock
and also includes some derivatives reflecting shares in the
Cybersecurity company FireEye Inc has acquired
Mandiant Corp, the computer forensics specialist best known for
unveiling a secretive Chinese military unit believed to be
behind a series of hacking attacks on U.S. companies. FireEye
shares jumped 31 percent to $53.93.
The PHLX semiconductor index edged down 0.6 percent,
weighed down by a 2.8 percent drop in Micron Technology Inc
to $21.06 after RBC lowered its rating on the stock to a
"sector perform" from "outperform."
Twitter shares gained 3.3 percent to $69.74. Shares
in the social media company burst out of the gate in 2014 with a
gain of more than 6 percent.
Investors will monitor automakers on Friday as they report
vehicle sales for December. Chrysler Group LLC reported a 6
percent gain last month in U.S. auto sales, its best December
since 2007, but still narrowly missed analyst expectations.
Ford Motor Co shares were flat at $15.44 and General
Motors Co slumped 3 percent to $39.70 after posting their