NEW YORK >> Stocks drifted lower today, despite a better-than-expected Commerce Department report showing that the weak economy hasn't kept consumers from spending. Market struggles despite
satisfactory retail newsBy Lisa Singhania
Associated PressRetail stocks recorded some gains, but the news failed to spark the level of investor interest needed for broader buying. The result: a market that meandered and then faded as the session advanced.
"It's been like watching the EKG of a potato," said Todd Clark, co-head of trading at WR Hambrecht. "The market is doing nothing because we have every reason to do nothing.
"The prevailing view is that we don't have enough earnings visibility or visibility about when the economy is going to turn. As a result, any strength in the market has been met with selling."
The Dow Jones industrial average closed down 3.74 at 10,412.17, according to preliminary calculations, its second straight session to finish nearly flat.
Broader stock indicators lagged. The Standard & Poor's 500 index dropped 4.56 to 1,186.73, while the Nasdaq composite index lost 17.72 to 1,964.53. The technology-focused index has now closed down seven of the last eight sessions.
Advancing issues led decliners more than 3 to 2 on the New York Stock Exchange, with 1,904 climbing, 1,210 falling and 198 unchanged. Volume came to 1.12 billion shares.
The Russell 2000 index gained 2.59 to 480.19. The NYSE composite index fell 0.49 to 607.54. The American Stock Exchange composite index rose 2.54 to 881.82.
The price of the Treasury's 10-year note rose 2.32 to 100 8/32, while its yield 1 basis point to 4.966. The price of the 30-year note rose 1/32 to 98 2/32; its yield was unchanged at 5.508.
The Commerce Department report released today found that although retail sales were flat overall in July, consumers are still buying clothes, beauty products and eating out. Much of the month's losses came from sluggish car sales and declining gasoline prices.