Dow now at 10,400, minus 5 points.
NEW YORK (AP) — Stocks were narrowly mixed in listless trading
Wednesday as investors found little reason to extend the previous
day’s rally.
The Dow Jones industrial average fell about 4 points and all the
other major indexes were narrowly mixed. Interest rates fell again
in the Treasury market as investors kept seeking out more secure
alternatives to stocks.
There was barely any news to motivate stock investors, and
certainly not any that would persuade them to continue the rally
that sent the Dow up 103 points Tuesday. There were no big economic
reports planned Wednesday. On Tuesday, a stream of improving
numbers fed the rally.
Retailers continued reporting their second-quarter earnings, and
investors were ambivalent about the results.
Target Corp. missed analysts’ forecasts for its second quarter
revenue and offered a muted outlook for sales for the rest of the
year. But the company told analysts it hopes to offset weak sales
with higher sales of groceries and its new discounts for credit
card holders. Target initially fell sharply, then recovered to a
moderate advance.
Meanwhile, BJ’s Wholesale Club Inc. lowered its earnings outlook
for the year. Its stock dropped.
The reports came a day after Wal-Mart Stores Inc. and Home Depot
Inc. issued numbers that were more upbeat. So investors were again
presented with numbers that appeared contradictory, and that
spelled more uncertainty about the economy.
Wednesday’s trading was muted, and that was to be expected after
investors on Tuesday showed their first real enthusiasm for stocks
in weeks and sent the Dow up 103 points. There were no big economic
reports planned Wednesday. And any big gains were likely to be
given back simply because investors don’t trust stocks to put
together a solid advance.
The Dow fell 4.69, or 0.1 percent, to 10,401.01. The Standard &
Poor’s 500 index rose 0.84, or 0.1 percent, to 1,093.38. The Nasdaq
composite index rose 7.81, or 0.4 percent, to 2,217.25
Gainers were ahead of losers by 4 to 3 on the New York Stock
Exchange. Volume was 316 million shares.
Treasurys remained a destination for investors seeking a safer
place than stocks to put their money. The 10-year Treasury yield
fell to 2.61 percent from 2.64 percent late Tuesday.
John Stoltzfus, senior market strategist with Ticonderoga
Securities in New York, said the market is becoming increasingly
dominated by a “What have you done for me lately?” attitude and
responding to daily reports about the economy.
“We live from economic data point to economic data point,” he said.
“That will probably continue at least until the end of the summer
as we wait for some kind of catalyst that would give the market
better definition.”
Volume was again extremely light, mostly because of vacations, but
also because many investors don’t have enough of a sense of the
economy’s strength. That’s making them hold off of any major
moves.
BHP Billiton’s $38.5 billion takeover offer for fertilizer producer
Potash Corp. of Saskatchewan turned hostile Wednesday. Potash had
called BHP’s offer grossly inadequate. The announcement of the bid
and Potash’s rejection Tuesday helped feed the rally in stocks.
Mergers and acquisitions activity tends to lift the market because
it shows investors’ confidence in the economy.
Target rose $1.22, or 2.4 percent, to $51.90. BJ’s fell $1.88, or
4.3 percent, to $41.43.
Overseas, Japan’s Nikkei 225 index closed up 0.9 percent. In later
European trading, London’s FT-SE 100 index fell 0.8 percent.
Germany’s DAX index fell 0.3 percent, while the CAC-40 index in
Paris fell 0.7 percent.
