Stocks advance
amid political,
economic fears

Associated Press

NEW YORK >> Stocks ended an uneven session with moderate gains today as investors vacillated between optimism and fear about the economy. The market also was trying to analyze the likely impact of the change in leadership in the Senate.

The Dow Jones industrial average closed the session up 16.91 at 11,122.42 after falling 60 points earlier in the session.

Wall Street's broader indicators followed the Dow's path, posting moderate gains late in the day. The Nasdaq composite index advanced 38.54 to 2,282.02 while the Standard & Poor's 500 index moved up 4.12 to 1,293.17.

Advancers edged out decliners on the New York Stock Exchange, with 1,590 up, 1,485 down and 236 unchanged. Volume was 1.3 billion shares vs. 1.13 billion yesterday.

The NYSE composite index rose 0.08 to 652.98, the American Stock Exchange composite index advanced 2.01 to 937.57 and the Russell 2000 index gained 3.04 to 510.40.

The Treasury's 10-year note fell 22/32 to 96 10/32; its yield rose 9 basis points to 5.49 percent. The 30-year bond fell 18/32 to 93 14/32; its yield rose 1/8 to 5.84 percent.

Today's session was choppy from the start after Vermont Sen. James Jeffords announced, as expected, that he is leaving the Republican party to become an independent, ending GOP control of the Senate.

Investors also were trading cautiously ahead of a speech Federal Reserve Chairman Alan Greenspan was scheduled to deliver tonight before the Economic Club of New York.

Adding to investors' nervousness about the economy was a Commerce Department report that new home sales posted their largest decline in four years in April.