NEW YORK (CNN/Money) -
The Nasdaq fell and the Dow industrials closed mixed Tuesday, the fourth straight session of weakness, as some positive earnings failed to inspire investors still shaky after a two-week selloff.
The Dow Jones industrial average (down 1.11 to 10063.64, Charts) and the Standard & Poor's 500 (down 1.45 to 1093.95, Charts) index closed little changed, while the Nasdaq composite (down 8.10 to 1901.80, Charts) lost 0.4 percent. The indexes had traded on both sides of breakeven throughout the session.
Stocks had started the day with a rally following three sessions of declines, struggled at midday, found momentum in the late afternoon, then petered out by the close.
Monday's session was particularly tough, and the major indexes were knocked sharply lower when an Israeli air strike killed the founder of Hamas, a Palestinian Islamic fundamentalist organization that the U.S. State Department has called a terrorist group. The attack sparked threats of retribution from both Hamas and al Qaeda and the ensuing unease triggered massive selling and sent the market to its lowest level in 2004.
The market has been in a much-anticipated correction phase since it hit its highs for the year in late January and mid-February. In particular, the selling has accelerated over the past two weeks, spreading from technology to other sectors, following the weaker-than-forecast February payrolls tally and culminated with Monday's pounding.
Tuesday wasn't much better.
"It was a very disappointing session," said Donald Selkin, director of research at Joseph Stevens. "You would think after all these down days we would get a bounce, but when the market gets in a funk, it puts a negative interpretation on everything and finds any reason to sell off."
The fundamentals look good longer-term, supporting continued market gains, he said. Interest rates are expected to remain low at least through the fall and first and second-quarter earnings are forecast to show strong year-over-year comparisons. But the market may be looking at the second half of the year and worrying about profits, the presidential election and the economic recovery.
For the short-term, Selkin said he would expect more sideways trading, barring another unsettling geopolitical event.
The next impetus for the stock market is likely early April, when the earnings reporting period heats up in earnest, and the March monthly payrolls tally is due.
After the close of trade Tuesday, chipmaker PMC-Sierra (PMCS: Research, Estimates) said it expects first-quarter revenue to come in at the high end of its previous range, which is roughly in line with analysts current estimates. Shares edged up 3 percent in after-hours trade.
Wednesday brings reports on durable goods and housing.
Demand for durable goods made in U.S. factories probably rose 1.2 percent in February, according to Briefing.com forecasts, after dipping 2.3 percent in January.
The pace of new U.S. home sales is expected to have risen to a seasonally adjusted annual rate of 1.1 million units from 1.06 million units in January, economists surveyed by Briefing.com expect. Thursday brings the tally on existing home sales, forecast to have risen to a 6.20 million unit rate in February from a 6.04 million unit rate in January.
On the move
A few companies delivered upbeat earnings Tuesday, but that failed to lift the broader market. Like several other brokerages before it, Goldman Sachs (GS: up $0.09 to $101.39, Research, Estimates) reported strong quarterly earnings that rose from a year earlier and topped estimates, helped by solid revenue from stock and bond trading, as well as its advisory role in several mergers and acquisitions. The stock closed little changed.
Handheld device maker PalmOne (PLMO: Research, Estimates) soared 30 percent. The stock was the second biggest percentage gainer on the Nasdaq after the company reported fiscal third-quarter earnings late Monday of a penny a share, up from a loss of 85 cents a year earlier. Analysts surveyed by First Call were expecting a loss of 33 cents per share. The gains resulted from strong sales of its Palm personal digital assistants.
Retailer Limited Brands (LTD: up $0.40 to $19.69, Research, Estimates) climbed 2 percent after late Monday it raised its first quarter earnings outlook.
Microsoft (MSFT: down $0.35 to $24.15, Research, Estimates) fell 1 percent and topped the Nasdaq's most-actives list. On Wednesday, the European Union will announce officially what it is fining the software leader for antitrust violations. (For more on the story, click here.)
Market breadth was positive. On the New York Stock Exchange, where 1.43 billion shares traded, advancers outnumbered decliners by more than nine to seven. On the Nasdaq, winners barely edged losers as 1.80 billion shares traded.
Treasury prices edged higher. The 10-year note rose 4/32 of a point, pushing its yield down to 3.69 percent, from 3.71 percent late Monday. The dollar pulled back from earlier gains, and was slightly lower versus the yen and euro.
Among commodities markets, NYMEX light sweet crude oil futures rose 40 cents to settle at $37.45 a barrel. COMEX gold rose $2.40 to settle at $420 an ounce.
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