Closing Market Report
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Manufacturing data holds back advance
By Tim Paradis
Associated Press
NEW YORK » Wall Street ended an erratic session little changed yesterday as strength in energy stocks offset a weak manufacturing data and a disappointing forecast from Wal-Mart Stores Inc.
Stocks found some leadership from the likes of Chevron Corp. and Exxon Mobil Corp. The big oil companies were bolstered by a five-session rally in the price of crude, which is now trading at its highest point since mid-September.
However, the markets were weighed by a disappointing reading of the Chicago Purchasing Managers index, which fell to 49.9 in November from 53.5 in October and pointed to slowing Midwest manufacturing. A reading below 50 suggests economic contraction; it was the first reading below 50 since April 2003. Investors' concern is that the index is a precursor of the nationwide purchasing managers report to be issued today by the Institute for Supply Management.
Also curbing the market's advance was Wal-Mart's announcement that sales at stores open at least a year, an important retail benchmark known as same-store sales, would likely be flat to up just 1 percent in December. The forecast from the world's largest retailer raised concerns about the health of consumer spending.
Analysts said some of yesterday's trading was based on more technical factors.
"Some of what we're seeing is a lot of people who are making a year-end play, setting themselves up for next year," said Doug Johnston, head of U.S. trading at Boston-based Canaccord Adams. "Big investors are going to peel out the stocks that have been losers, and begin to go with the momentum trades."
The Dow Jones industrial average fell 4.80, or 0.04 percent, to 12,221.93.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.15, or 0.08 percent, to 1,400.63, and the Nasdaq composite index fell 0.46, or 0.02 percent, to 2,431.77.
With one month left in the year, the markets are heading toward double-digit growth, with November's 1.17 percent rise in the Dow pushing the entire index up 14.04 percent this year. The S&P 500, up 1.65 percent in November, has risen 12.20 percent in 2006; the Nasdaq rose 2.75 percent during the month to climb 10.27 percent for the year.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.46 percent from 4.52 percent late Wednesday.
Stocks were also hurt by a weakening dollar, which fell against major currencies, though not against the Japanese yen. The British pound reached a 14-year high against the dollar.