Updated from 4:06 p.m. EDTIn a see-saw session, stocks closed with small losses on the last day of the second quarter, as money managers sought to burnish their portfolios while grappling with mildly disappointing economic data. Up as high as 8970 and down as low as 9068, the Dow Jones Industrial Average closed down 3.61 points at 8985.44. The Nasdaq, despite being buoyed by positive comments from tech firms, dropped 2.45 points, or 0.2%, to 1622.81, while the S&P 500 fell 1.72 points, or 0.2%, to 974.50. Some of the earlier negativity was in reaction to a key manufacturing report for June, the Chicago Purchasing Managers' Index, which came in at 52.5, missing the 53 expected by economists but improving from May's mark of 52.2. "In part because of the nice weather, people came into work cheerful, but then the Chicago PMI was a little depressing. It didn't show that much of a continued gain and set the market back a bit, which is pretty much what we expected, because Friday was a pretty nasty day," said Ken Tower, chief market strategist for CyberTrader. "We didn't even get the late-day rally you get." Monday was the last chance for fund managers to buy highflying stocks to show investors in their end-of-quarter statements. It also saw some index reshuffling. Because of these events, volume was fairly high on the New York Stock Exchange, which traded in excess of 1.5 billion shares. During this shortened trading week, volume is expected to weaken, making for more volatile trading. "There's a lot of rebalancing going on. You have the new Russell indices, the new S&P global indices, window dressing, and lots of short-term influences on the market," said Tower. "But certainly, the Fourth of July week and most holidays are low volume weeks and we look for that to be the case this year." Microsoft ( MSFT) ended up one cent at $25.64 after a report in Barron's argued that the company should pay out more of its staggering cash position in the form of a dividend to investors. The change to the tax laws governing dividends has already prompted other companies to takes similar steps. On Monday, PetsMart ( PETM) shares gained 7 cents, or 0.4%, to $16.71, after the company announced plans to initiate a quarterly dividend of 2 cents. Also, Cendant ( CD) announced a quarterly dividend of 7 cents a share and said that second-quarter earnings would meet or exceed estimates. Cendant rose 36 cents, or 2%, to $18.42. In other second-quarter preannouncements, LSI Logic ( LSI) shares dipped 2 cents, or 0.3%, to $7.05 after the chipmaker said revenue would hit the high end of its earlier guidance. EDS ( EDS) reaffirmed cash-flow guidance for 2003 but said it would miss cash-flow expectations for the second quarter. Shares fell 10 cents, or 0.5%, to $21.35. Seagate Technologies ( STX) announced that earnings would top the Wall Street consensus, boosted its quarterly dividend by a penny and registered a 60-million-share offering by its parent company. Fulcrum Global Partners reiterated its buy rating on the shares, which slid 50 cents, or 2.8%, to $17.68.