NEW YORK (AFP) - US stocks closed slightly lower with the Dow industrials hovering around 2004 lows amid uncertainty over the deadlocked US presidential election and a flurry of disappointing earnings reports.
The Dow Jones Industrial Average closed down 7.82 points, or 0.08 percent, at 9,749.99, well off the day's lows, but around depths not seen since November of last year.
The tech-laden Nasdaq composite shed 1.10 points, or 0.06 percent, ending the day at 1,914.04, while the broad market Standard and Poor's 500 index closed down 0.94 points, or 0.09 percent, at 1,094.80.
Blue chips dipped early in the trading session as New York oil prices soared to new highs in electronic trading, touching 55.67 dollars a barrel before receding to close at 54.54 dollars.
"It's sort of like the election itself between the Republicans and Democrats. In this case, it's the bulls and bears and it's too close to call," said Ryan Beck and Co. chief investment officer Joe Battipaglia, referring to Monday's lack of momentum.
A flurry of disappointing earnings from BellSouth, Kimberly-Clark and Quest Diagnostics added to the gloom, and even record results from American Express Company failed to lift spirits.
American Express posted record third quarter net profits of 879 million dollars, up 14 percent compared with 770 million in the same period of 2003.
The financial services group closed down 58 cents, or 1.1 percent, at 51.15 dollars.
Delta Air Lines, racing to avoid bankruptcy, said it had secured highly conditional, asset-backed financing of a maximum 600 million dollars from American Express.
Elsewhere in the financial sector, Citigroup was rapped over the knuckles by market regulator NASD for allegedly issuing hedge fund sales phamplets containing improper claims.
NASD hit Citigroup with a 250,000 dollar fine, its largest enforcement action to date, but Citigroup closed up two cents at 42.58 dollars.
And a report in The Wall Street Journal said the chairman and chief executive of US insurance giant Marsh and McLellan Co., Jeffery Greenberg, resigned as the company faced a lawsuit for allegedly rigging bids.
Greenberg gave his resignation at a morning board meeting, the paper said, citing a person familiar with the matter.
Marsh and McLellan closed lower 37 cents, or 1.4 percent, at 26.42 dollars.
Meanwhile, American International Group said it was seeking a "prompt resolution" of separate Securities and Exchange Commission and Justice Department probes into its activities, including a review of financial vehicles it helped create.
AIG closed up 1.40 dollar, or 2.6 percent, at 56.10 dollars.
Even a surprisingly good report on existing home sales failed to ignite enthusiasim.
US existing home sales unexpectedly shot to the third highest level on record in October, prompted by a scramble for near rock-bottom mortgage rates, according to a survey by the National Association of Realtors (NAR) said.
Existing home sales surged 3.1 percent to a seasonally adjusted annual rate of 6.75 million after two straight declines, the realtors group said.
Wall Street had forecast for a modest decline in sales.
A total of 1.4 billion shares changed hands on the New York Stock Exchange while 1.7 billion shares were swapped on the Nasdaq.
Bonds moved higher. The yield on the 10-year US Treasury bond fell to 3.972 percent from 3.984 percent Friday while that on the 30-year bond declined to 4.754 percent against 4.761 percent. Bond yields and prices move in opposite directions.
10/25/2004 - 21:41 GMT - AFP