US stocks close almost flat

US stocks closed almost flat today as the day’s early declines threatened to halt the market’s January rally one day after the Dow Jones industrial average closed above 11,000 for the first time since June 2001.

Disappointing earnings from Alcoa Inc., the first of the 30 Dow industrials to report, disturbed investors.

The Dow fell more than 44 points in opening trading, but rebounded in the afternoon to close nearly even. The Nasdaq composite rose slightly today after shares in Apple Computer Inc. hit a 52-week high.

The mixed day came after a surge in buying during the first five trading days of 2006 that sent all the major indexes to at least four-and-a-half year highs.

The rally took off after the Federal Reserve signaled the central bank was near the end of its streak of short-term interest rate hikes.

“This has been one of the strongest starts of the year we’ve had in many years,” said Linda Duessel, market strategist at Federated Investors in Pittsburgh. “You shouldn’t expect it to keep on going.”

With the market priced as it is, she said, “we’re more beholden to earnings and earnings outlooks. We could set ourselves up for disappointment if earnings don’t come in a positive way.”

The Dow Jones industrial average fell 0.32, or nearly 0%, to 11,011.58.

The average of 30 blue-chip stocks gained 52.59 Monday to close at 11,011.90. The last time the Dow finished above 11,000 was June 7, 2001, when it closed at 11,090.74.

Broader stock indicators were narrowly mixed. The Standard & Poor’s 500 index fell 0.46, or 0.04%, to 1,289.69, and the Nasdaq composite index rose 1.63, or 0.07%, to 2,320.32.