NEW YORK >> Wall Street battled its fears about terrorism and war with Iraq today, sending prices swaying throughout the session and ultimately leaving the market without a clearcut direction. Market mixed
on Iraq newsBy Amy Baldwin
Associated PressWhile the Dow Jones industrials and Nasdaq composite index managed to end the session higher, the broader market as seen through the Standard & Poor's 500 index fell. And overall, more stocks dropped than advanced. Declining issues outnumbered advancers nearly 5 to 4 on the New York Stock Exchange. Trading volume was light.
Congressional testimony by Federal Reserve Chairman Alan Greenspan provided investors with little guidance, analysts said. Greenspan said the market's decline this summer and early fall and concerns about Iraq had helped weaken the economy, yet he also described the economy as "remarkably resilient."
The Dow closed up 12.49, or 0.2 percent, at 8,398.49 after climbing as much as 107 points and falling as much as 81.
The Nasdaq climbed 11.71, or 0.9 percent, to 1,361.27. The Russell 2000 index, the barometer of smaller company stocks, rose 1.42, or 0.4 percent, to 376.11.
But the S&P 500 index slipped 0.42 to 882.53.
The price of the Treasury's 10-year note was up 1/8 point today, while its yield fell to 3.83 percent from 3.86 percent yesterday. Two-year Treasury notes were up 3/32 point and yielded 1.72 percent, down from 1.78 percent yesterday.
"A lot of people would like to feel that there is a reason to be in the market," said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray in Minneapolis, adding that investors saw few reasons to make major moves today.
Stocks began the day lower amid fears of terrorism. But news that Iraq was agreeing to a U.N. resolution calling for weapons inspections lifted the market. Then by late afternoon today, stocks were down again before ending mixed. For truly sustainable gains, analysts said investors must see Iraq comply with the inspections along with consistent, definite improvement in earnings and the economy.
"The shorter-term implication of Iraq is weighing on people's minds. How will it affect the Christmas season? How many are fearful there will be domestic retaliation here," said Ned Riley, chief investment strategist at State Street Global Advisors.
Nordstrom dropped $2.91 to $19.12 after the upscale department store company issued a third-quarter profit warning.
Sears fell $1.70 to $21 on a downgrade from Goldman Sachs.
Overseas, Japan's Nikkei stock average lost 0.3 percent and fell to a 19-year low. In Europe, France's CAC-40 fell 1 percent, Britain's FTSE 100 declined 1.4 percent and Germany's DAX index lost 1.6 percent.