Stocks flat as Wall Street shrugs off China move

Associated Press

NEW YORK

Stocks were little changed Monday as investors focused on strong holiday-shopping results and looked past an interest-rate hike in China.

Many traders stayed home because of the snow, but the absence of selling points to growing confidence about the U.S. economy. Data from MasterCard Advisors’ SpendingPulse survey estimate that U.S. retail sales between Nov. 5 and Dec. 24 rose 5.5 percent from last year. Wall Street is anticipating that today’s consumer-confidence index for December will reflect this optimism.

Also expected today is the widely watched S&P/Case-Shiller house-price index for October, which may not capture the exuberance seen in other more- recent economic indicators.

The Dow Jones industrial average ended the day down 18.46 points, or 0.2 percent, to 11,555.03. The Standard and Poor’s 500 index gained 0.8, or less than 0.1 percent, to 1,257.54. The Nasdaq composite index rose 1.7 points, also less than 0.1 percent, to 2,667.27. Monday’s trading was particularly light after a massive blizzard swept the Northeast, disrupting commutes for many people in New York’s financial industry. Activity already was expected to be slow in a week sandwiched between the Christmas and New Year’s holidays.

China’s move over the weekend was the second time in three months that the country took steps to slow the pace of its economic expansion. Inflation jumped to its highest levels in two years in November. Any slowdown in China affects companies worldwide and can drive a decline in many stock markets.