NEW YORK - U.S. blue-chip stocks squeaked out a slim gain Monday ahead of U.S. midterm elections and expected moves from the Federal Reserve.
The Dow Jones industrial average rose 6.13 points, or 0.1 percent, to end at 11,124.62, after reversing an earlier triple-digit climb.
Limiting the measure's losses, technology stocks rose after the Semiconductor Industry Association said global chip sales rose 2.9 percent in September from a month earlier. Intel Corp. gained 2.6 percent, while Hewlett-Packard Co. rose 1.1 percent.
Traders' focus was locked on events later this week, including Tuesday's midterm elections and Wednesday's conclusion of a meeting of the Federal Reserve's policymaking committee. The stock market has rallied since early September on expectations that the Fed will resume purchasing bonds in order to stimulate the economy.
Investors said they wouldn't be surprised to see a sell-off after the election and Fed meeting, given the market's steady climb since September amid a surge of market optimism.
"The market's been rallying almost straight up for a long, long time," said Hank Camp, founder of H.L. Camp & Co., who predicted the market would take a turn down next week. "It's way overdone."
The market climbed earlier Monday, fueled by encouraging manufacturing reports from the U.S. and China, as well as an unexpected rise in U.S. construction spending.
The Nasdaq composite closed down 2.57 points, or 0.1 percent, to 2,504.84. The Standard & Poor's 500-share index edged up 1.12 points, or 0.1 percent, to 1,184.38.
The market's climb cooled when financial stocks slid into the red after a ProPublica report said the U.S. Securities and Exchange Commission is investigating whether J.P. Morgan Chase allowed Magnetar Capital, a hedge fund, to improperly select assets for a $1.1 billion deal backed by subprime mortgages. J.P. Morgan shed 0.6 percent, while other financials tumbled.
MARKETWATCH
