Star-Bulletin news services
Stocks little changed
during light trading
NEW YORK >> Stocks drifted to a narrowly mixed finish yesterday in a session so quiet that the Dow Jones industrials floated in only a 40-point range.
With no major economic or earnings news released and many traders and investors wrapping up their summer vacations, analysts had expected the session to be light and choppy.
Trading volume has been thin throughout August.
"Summer is coming to an end. That is a good thing going forward. Volume will come back up," said Brian Williamson, an equity trader at The Boston Company Asset Management.
The Dow closed down 6.66, or 0.1 percent, at 9,333.79, having gained 22.81 Tuesday in a late-day advance.
The market's broader gauges finished higher. The Nasdaq composite index rose 11.48, or 0.7 percent, to 1,782.13 as investors followed a recent trend of shifting more of their money into growth stocks such as tech issues.
The Standard & Poor's 500 index eked out a gain of 0.06 to close at 996.79.
Advancing issues outnumbered decliners slightly more than 4 to 3 on the New York Stock Exchange. Consolidated volume was extremely light at 1.35 billion shares, below Tuesday's 1.50 billion.
The Russell 2000 index, the barometer of smaller company stocks, advanced 4.41, or 0.9 percent, to 490.92. The NYSE composite index rose 8.24 to 5,605.73. The American Stock Exchange composite index gained 5.54 to 971.28.
Analysts said there was room for the market to pull back and that Wall Street had been expected to retreat, given that stocks are in their sixth month of rallies.
"Technically, stocks are starting to be overbought," said A.C. Moore, chief investment strategist for Dunvegan Associates in Santa Barbara, Calif.
Still, the declines were small and limited to the Dow. The major indexes continued to hover around highs not seen in more than a year; analysts said the current readings are being regarded as support levels on Wall Street.
For now, it looks like investors have already factored in an economic rebound and earnings recovery into the Wall Street's higher prices, analysts said.
Brokerage house ratings affected the performance of individual stocks.
Medical supplies maker Boston Scientific dropped $2.13 to $63.25 after Morgan Stanley lowered its rating to "equal-weight" from "overweight."
Brewing company Adolph Coors climbed $2.25 to $54.41 after Bear Stearns upgraded it to "outperform" from "peer perform."
Exxon Mobil rose 42 cents to $37.25 after Banc of America Securities raised its rating to "buy" from "neutral."
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