Stocks steady after BP agrees to $20B victim fund

NEW YORK (AP) - Stocks pulled off early lows to trade nearly flat Wednesday after BP's agreement to put $20 billion into a fund for victims of the Gulf of Mexico oil spill eased some of the uncertainty about the company's stability.

BP shares rebounded and helped steady the overall market. The Dow Jones industrial average rose about 7 points in afternoon trading. Broader indexes also rose. The modest moves came a day after the Dow rose 214 points to its highest close in nearly a month. Stocks had risen three of the past four days.

BP plans to put $20 billion into a fund for victims, senior administration officials told The Associated Press. The agreement comes as President Barack Obama met with BP executives at the White House. Traders have been questioning how BP will handle the mounting costs of the spill, which began April 20 when a rig operated by BP exploded.

"One source of uncertainty has been at least partially resolved," said Brian Gendreau, a financial adviser affiliated with Financial Network in Gainesville, Fla.