US stocks wavered in early trade on Wednesday despite better-than-estimated growth in New York area manufacturing as concerns over eurozone debt crisis weighed on the sentiment.

The S&P 500 Index declined 0.65 points, or 0.05 percent, to trade at 1,240.88 at 9:55 a.m. EDT. The Dow Jones Industrial Average advanced 12.87 points, or 0.11 percent, to trade at 11,489.41. The Nasdaq Composite Index declined 0.01 percent.

Worries over the euro zone debt crisis returned after Moody's Investor Services said on Wednesday that it has put Spain's Aa1 debt rating under review for a possible downgrade, taking into account the large debt burden of the country and its funding needs next year.

Business activity in New York State rebounded in December after contracting sharply in November for the first time since mid-2009. The index showing general business conditions in New York State rose to 10.6 points in December from minus 11.1 points in November.

Inflation in the U.S. continued to remain weak during November, in line with analysts' expectations. The consumer-price index increased 0.1 percent after a 0.2 percent rise the prior month, while economists expected inflation to rise 0.2 percent. Core inflation, excluding food and energy, rose 0.1 percent during the month, its first increase since July.

On the corporate front, First Solar Inc. advanced 1.44 percent after the company said it expects full year 2011 earnings of $8.75 to $9.50 a share and sales of $3.7 billion to $3.9 billion. Analysts expect earnings of $8.60 a share on revenue of $3.63 billion.

Dynegy advanced 3.85 percent after the company said it accepted Carl Icahn’s takeout offer of $665 million or $5.50 a share.

The euro declined 0.14 percent to 1.3358 against the dollar and the yen declined 0.20 percent against the greenback.

Crude oil futures declined 0.50 percent to $87.84/barrel and gold futures fell 1.09 percent.

European stock markets are currently trading lower with FTSE100 down by 20.13 points, DAX30 down by 41.70 points and CAC 40 down by 27.74 points.