NEW YORK >> The stock market's latest attempt to sustain a rally fizzled today as doubts about the economy and corporate profits overtook enthusiasm about stronger-than- expected retail sales and technology sector upgrades.
Dow nears 11,000,By Lisa Singhania
but Nasdaq falls
Market watchers said investors remain hesitant to buy, despite predictions by many on Wall Street that an economic recovery will begin by year's end.
The Dow Jones industrial average closed up 43.46 at 10,910.44, ending a three-day losing streak but falling back from a 112-point gain earlier in the session. The Nasdaq composite index fell 27.77 to 2,128.86 and the Standard & Poor's 500 index lost 0.36 to 1,255.18. Advancers led decliners 3 to 2 on the New York Stock Exchange, with 1,842 up, 1,241 down and 198 unchanged. Volume was 1.05 billion vs. 1.04 billion yesterday. The NYSE composite index rose 1.70 to 637.99, the American Stock Exchange composite index fell 2.77 to 939.93 and the Russell 2000 index rose 0.40 at 490.58.
The Treasury's 10-year note fell 7/8 to 97 25/32; its yield rose 12 basis points to 5.29 percent. The 30-year bond dropped 1 5/32 to 94 20/32; its yield rose 9 basis points to 5.75 percent.
Morgan Stanley's upgrade of a handful of semiconductor companies initially boosted the sector, but by the end of the session the momentum had faded. Applied Materials, as one example, fell 3 cents to $51.01.
Retail results overall were lackluster, but the standouts were rewarded. Wal-Mart, a Dow component, jumped $1.83 to $53.42 after a better-than-expected 6.5 percent increase in sales at stores open at least a year. The Gap, which reported a drop in same-store sales, still rose $3.61 to $32.41 after the results beat forecasts.
An unexpected interest rate by the European Central Bank also sparked optimism today that economic conditions overseas would improve.