Light volume as the Dow closes at 11,479, down 13 points.
NEW YORK (AP) — Low trading volumes and a lack of economic
reports kept stocks confined to a narrow range Monday. Indexes
finished mixed and bond yields were barely changed.
American Express Co. had the largest move of the 30 stocks that
make up the Dow Jones industrial average. The card issuer fell 3.4
percent to $42.50 after Stifel Nicolaus downgraded the company. New
rules proposed by the Federal Reserve could limit fees the company
charges merchants.
Aloca Inc. led the Dow index with a 1.4 percent gain to $14.77.
The Dow fell 13.78, or 0.1 percent, to 11,478.13. The Standard and
Poor’s 500-stock index rose 3.17, or 0.3 percent, to 1,247.08. The
Nasdaq composite index gained 6.59, or 0.3 percent, to finish at
2,649.56.
The yield on the 10-year Treasury bond rose slightly to 3.34 from
3.33 percent late Friday.
Stocks have been rising strongly in December. The Dow has gained
4.3 percent so far this month and the S&P has hit seven new
annual highs since Dec. 8.
Investors have been encouraged by improving economic data on retail
sales, consumer confidence and factory production, as well as
policy changes that will benefit stockholders. President Barack
Obama signed a bill last week that will keep Bush-era income tax
cuts in place for another two years. The law will also extend
favorable tax rates on capital gains and dividends.
“The markets … made quite a run,” said Stephen Carl, principal and
head of equity trading at The Williams Capital Group. But the tax
cuts “can only go so far,” Carl said, and are unlikely to continue
sending stocks higher.
In corporate news, Boeing Inc. fell 2.7 percent to $63.27 even as
the company said it was increasing the production rate for its 777
aircraft again in response to strong demand. Last week, the
aerospace giant said that customers canceled orders for three 777s
and one of its 787s.
Medtronic Inc. rose 0.6 percent to $37.62 after the world’s largest
medical device manufacturer said its chairman and CEO will step
down in April after leading the company for three years.
Later in the week, investors will get reports from shoe maker Nike
Inc., used car dealership chain CarMax Inc. and pharmacy operator
Walgreen Co.
Markets will be closed on Friday in observance of Christmas.
The dollar gained 0.3 percent against an index of six
heavily-traded currencies. Commodity prices rose 1.1 percent.
Rising and falling shares were even on the New York Stock Exchange.
Trading volume came to 830 million shares.
