NEW YORK >> Stocks closed narrowly mixed in quiet pre-holiday trading today as mildly encouraging economic news helped offset retailers' reports of disappointing sales. Market mixed along
with economic reportsBy Adam Geller
Associated PressCitigroup's announcement of a huge earnings charge also held the market back.
The Dow Jones industrial average closed down 18.03, or 0.2 percent, at 8,493.29, according to preliminary calculations. That followed a gain of nearly 146 points on Friday.
The broader market rose. The Nasdaq composite index gained 18.63, or 1.4 percent, to close at 1,381.68. The Standard & Poor's 500 index rose 1.62, or 0.2 percent, to 897.38.
Declining issues narrowly outnumbered advancers by a 11-to-10 ratio on the New York Stock Exchange, where volume came to 840.02 million shares, down from 1.31 billion at the same point Friday.
The Russell 2000 index, a barometer of smaller company stocks, rose 2.85, or 0.7 percent, to 389.73.
Analysts cautioned against reading too much into the market's performance, noting that the mid-week Christmas holiday was leading many traders and investors to take a few days' vacation.
"Behind all this is very, very little volume," said Chris Wolfe, chief equity strategist with the J.P. Morgan private bank. "Today and tomorrow probably aren't indicative of a lot of position-taking by institutions or others."
Wolfe and other analysts said those still in the market were likely troubled by announcements from several retailers today that holiday sales are continuing to fall short of expectations.
"Retailers are getting slammed and they're getting slammed for a reason," said Russ Koesterich, U.S. equity strategist at State Street Corp. in Boston.
Investors could find limited reassurance in some mildly upbeat news about consumer behavior. But analysts said the market might well continue to drift without more upbeat corporate news.
The Commerce Department reported that consumers increased their spending by 0.5 percent in November, the biggest advance in four months. The report, which also noted a rise in personal income, bolstered optimism that consumers will continue spending enough to keep the economic recovery going.
Also today, the University of Michigan reported consumer confidence edged up in December.
Citigroup fell after the company said its quarterly earnings would be reduced by $1.5 billion to pay for the costs of settling charges of biased stock research, and to cover eventual regulatory and court verdicts related to its dealings with Enron. The stock fell 46 cents to $37.68.
Federated Department Stores fell $1.08 to $27.84, after the company said its holiday season will fall short of its forecasts. Wal-Mart declined $1.20 at $49.59 after saying sales last week were at the low end of its expectations. J.C. Penney fell $1.49 to $22.33.
Yahoo! rose 65 cents to $17.73, after the company said it will buy Inktomi for $235 million.
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