Stocks Close Near Flat Line

Updated from 3:24 p.m. EST

Stocks took a twisting route to end little changed Thursday as traders contended with a two-session rally, a weak report on Midwestern manufacturing and mixed retail sales results.

The Dow Jones Industrial Average fell 4.80 points, or 0.04%, to 12,221.93 after swinging in a range of more than 100 points. The S&P 500 tacked on 1.15 points, or 0.08%, at 1400.63, and the Nasdaq Composite slipped less than a point to finish at 2431.77.

Early on, sellers were spurred to action after the Chicago purchasing managers' index for November was much softer than expected, falling to 49.9 from 53.5 in October. An uptick to 54.4 had been forecast. A number below 50 signals contraction, while a reading above points to expansion.

Though it's a regional survey, the Chicago PMI is used by traders to help them estimate the strength of the national factory sector.

The market rebounded after midday, but the highs wouldn't hold into the close. Wall Street had risen for the previous two sessions after a steep selloff Monday.

As the new day began, investors were faced with monthly chain-store sales from the nation's retailers. Among them, Limited's (LTD Quote) November same-store sales rose 12%, Pacific Sunwear's (PSUN Quote) monthly comps declined 3.8%, and Bebe Stores (BEBE Quote) had a same-store sales increase of 5.8%.

Guess? (GES Quote) said comparable sales were up 12.1% in November, and Wet Seal (WTSLA Quote) had an increase of 5.5%. Pier 1 (PIR Quote) had another drop, with same-store sales falling more than 15%.

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