Dow rises after Iraqi move

Wall Street battled its fears about terrorism and war with Iraq today, sending prices swaying throughout the session and ultimately leaving the market without a clearcut direction.

While the Dow Jones industrials and Nasdaq composite index managed to end the session higher, the broader market as seen through the Standard & Poor’s 500 index fell. And overall, more stocks dropped than advanced.

Congressional evidence by Federal Reserve chairman Alan Greenspan provided investors with little guidance, analysts said. Greenspan said the market’s decline this summer and early autumn, and concerns about Iraq had helped weaken the economy. Yet he also described the economy as “remarkably resilient”.

The Dow closed up 12.49, or 0.2%, at 8,398.49, after climbing as much as 107 points and falling as much as 81.

The Nasdaq climbed 11.71, or 0.9%, to 1,361.27.

But the S&P 500 index slipped 0.42 to 882.53.

Stocks began the day lower amid fears of terrorism. Investors were unnerved following reports on Tuesday that a tape recording purportedly by Osama bin Laden had been found and that on it he had praised terrorist attacks in Bali and Moscow last month.

But news that Iraq was agreeing to a UN resolution calling for weapons inspections lifted the market.

The spectre of war with Iraq contributed to a three-day slide in stocks that began late last week and continued on Monday. Prices were generally higher on Tuesday.

Then by late afternoon today, stocks were down again before ending mixed. For truly sustainable gains, analysts said investors must see Iraq comply with the inspections along with consistent, definite improvement in earnings and the economy.

Sears retailer fell 1.70 to 21 on a downgrade from Goldman Sachs.

Dow industrial Citigroup fell 1.39 to 35 following a report in The Wall Street Journal. The report said e-mails by former analyst Jack Grubman, at the company’s Salomon Smith Barney unit, indicated he raised his rating on AT&T to help Citigroup CEO Sandford I. Weill win a power struggle within the company.

But Campbell Soup rose 1.63 to 21.42 on first-quarter earnings that were 3 cents a share higher than analysts anticipated.

And Tiffany climbed 1.76 to 26.59 on third-quarter earnings that were a penny a share higher than expectations.

Declining issues outnumbered advancers nearly 5 to 4 on the New York Stock Exchange. Trading volume was light.

The Russell 2000 index, the barometer of smaller company stocks, rose 1.43, or 0.4%, to 376.12.