By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Thursday were little
changed, with equities taking a near-neutral stance after mixed
economic data failed to move the needle for benchmark indexes that
are within reach of closing highs.
In position for a monthly gain of 1.6%, the Dow Jones Industrial
Average (DJI) rose 11.48 points, or 0.1%, at 14,086.85, which was
about 78 points from its all-time closing high of 14,164.53, set on
Oct. 9, 2007.
Rising 1.4% from the end of January, the S&P 500 index (SPX)
added 2.73 points, or 0.2%, to 1,518.72, leaving it 46 points from
its highest close, hit on Oct. 9, 2007.
"On the days that (record) happens, the news media will tend to
indicate with front-page headlines that the stock market is at an
all-time high, and people get excited. My mom called me yesterday,"
said Jim Russell, chief equity strategist for U.S. Bank Wealth
Management in Cincinnati.
"Stocks are one of the few things people want to buy more of
when they are expensive, but not when they are on sale," Russell
added of the counterintuitive mode displayed by the retail
investing public.
But uncertainty on Wall Street likely will reign in the near
term as politicians grapple with automatic cuts in federal spending
otherwise known as sequestration scheduled to start at midnight
Friday.
"The next few weeks are unforecastable to a degree, there could
be volatility in the equity market that is sourced from
Washington," said Russel.
After offering little reaction to economic reports that had the
U.S. economy growing 0.1% in the final quarter of 2012 and weekly
jobless claims falling by 22,000 to 344,000, Wall Street drew a
small lift from a measure of Chicago-area manufacturing, which hit
an 11-month high in February.
Limited Brands Inc. (LTD) climbed 1.5% a day after the retailer
reported fourth-quarter income rose. J.C. Penney Co. (JCP) fell 16%
after the retailer reported a larger net loss.
The Nasdaq Composite (RIXF) added 9.01 points, or 0.3%, to
3,171.27, leaving it ahead 0.9% for February.
For every three stocks sliding four advanced on the New York
Stock Exchange, where 221 million shares traded as of 12:05 p.m.
Eastern. Composite volume hit 1.3 billion.
Figures from the Commerce Department had the U.S. economy
clearing a prior-estimated contraction. See: Economy grew, just
barely, in fourth quarter.
At the same time, the Labor Department reported a
larger-than-expected drop in jobless claims last week. See more on
drop in initial applications for benefits.
See: Record stock-market highs should aid the bruised retail
psyche.
Analysts said the proximity to those highs could lure in even
more investors, and that the market was also coming to realize that
the consequences of sequestration were perhaps not as gloomy as
originally thought. Automatic spending cuts kick in Friday, barring
a last-minute deal by lawmakers. See: The sequester starts Friday.
Then what?
Subscribe to WSJ: http://online.wsj.com?mod=djnwires