Stocks sluggish as investors cash in on last week's rally | The Honolulu Advertiser | Hawaii's Newspaper
Stocks sluggish as investors cash in on last week's rally
NEW YORK  Wall Street meandered through a lackluster session today, unimpressed by better-than-expected retail sales and a drop in unemployment claims that indicated the economy might be turning around.
The approach of fourth-quarter earnings reports this month also prompted caution among investors.
Unlike last week, when general enthusiasm about a 2002 recovery propelled the market higher, buyers now want more specifics. They hope the reports will give them a better idea of exactly when business will begin to grow, and at what rate.
After advancing rapidly during the holidays, the major indexes have pulled back and now are hovering in the range they were before Christmas; about 10,000 for the Dow and 2,000 for the Nasdaq.
Even better-than-expected unemployment and retail figures today weren't enough to incite buying  although a few weeks ago the same information might have been enough to start a rally.
The Labor Department reported that new claims for unemployment benefits fell by 58,000 last week to 395,000, the lowest level in three weeks.
Investors also rewarded retailers that didn't fare as poorly as anticipated.
Gap gained $1.83 to $16.35 after reporting an 11 percent drop in December sales at stores open at least a year; analysts had predicted an 18 percent decline.
Technology stocks, among the biggest beneficiaries of the recent advance, sagged for a third session.
IBM fell $2.35 to $122.14, while Intel lost 71 cents to $34.65.
Declining issues led advancers 8 to 7 on the New York Stock Exchange. Volume came to 1.28 billion shares, compared with 1.45 billion yesterday.