Dow seesaws but ends day with another modest loss

Updated: July 29, 2010 - 8:18 PM

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NEW YORK - Stocks ended an erratic day with a modest loss Thursday as investors tried to reconcile another batch of conflicting economic signals.

The Dow Jones industrial average closed down 30 points after falling as much as 110 and rising 87 during the day. The other big market indexes also closed slightly lower.

Thursday's trading fit with the market's monthslong pattern. Investors are torn between upbeat earnings news from companies and reports that point to an uncertain recovery. That indecision was clear as stocks rose on strong earnings at Southwest Airlines Co., Exxon Mobil Corp. and other companies, then fell on disappointment over a slight drop in first-time claims for unemployment benefits.

The Labor Department said initial claims for unemployment benefits dropped by a modest 11,000 to 457,000 last week.

That's slightly better than the 459,000 forecast by economists polled by Thomson Reuters, but investors were disappointed because the drop was so small.

"They saw it was more of the same," said Bryan Jordan, director of financial markets analysis at Nationwide Investments. "This is an unusually stagnant labor market."

The Dow fell 30.72, or 0.3 percent, to 10,467.16. Although the Dow has fallen 70 points over the past two days, it is up 7.1 percent for July with one trading day to go.

The Standard & Poor's 500 index fell 4.60, or 0.4 percent, to 1,101.53. The Nasdaq composite index fell 12.87, or 0.6 percent, to 2,251.69.

ASSOCIATED PRESS