US stocks advance

Wall Street ended a tepid trading session with a moderate advance today after a disappointing outlook from Kimberly Clark left investors questioning prospects for a solid business recovery in 2003.

Stocks struggled for much of the session to claim their gains.

Trading paled by comparison with Tuesday, when the market rose sharply after the Federal Reserve issued a positive assessment of the economy and left interest rates unchanged on the belief that economic conditions were strengthening.

After falling as much as 86 points earlier, the Dow Jones industrial average closed up 14.88, or 0.2%, at 8,589.14.

The Dow rose 100.85 the previous session.

The market’s broader gauges were also higher. The Nasdaq composite index rose 5.87, or 0.4%, to 1,396.63. The Standard & Poor’s 500 index gained 0.50, or 0.05%, to 904.95.

Wall Street was put under pressure by Kimberly-Clark, which dropped 1.15 cents to 46.78 after lowering its fourth-quarter and 2003 earnings outlooks. The news was upsetting to investors who know that consumer products companies typically are among the safest havens in difficult markets due to a steady demand for their products.

Despite Kimberly-Clark’s news, the market fought to climb higher, which analysts attributed to investors believing the future looks a lot more positive for Wall Street.

They believe that with news of corporate scandals dissipating, investors will be paying closer attention to the economy’s progress, which bodes well for stocks. And, after three years of declines, prices look appealing, especially with better economic conditions.

Retailer Talbots rose 1.05 to 29.49 following an upgrade from Lehman Brothers. Emmis Communications climbed 41 cents to 20.17 after Wachovia Securities raised its rating on the radio operator.

Technology also traded higher, having already had the biggest gains during investors’ fourth-quarter buying binge. Analysts say investors’ newfound preference for techs is a sign that better times are ahead for Wall Street. Oracle rose 60 cents to 11.30 and Microsoft advanced 64 cents to 54.65.

Advancing issues outnumbered decliners 4 to 3 on the New York Stock Exchange. Trading volume was light.

The Russell 2000 index, the barometer of smaller company stocks, rose 0.41, or 0.1%, to 393.88.