NEW YORK — The Dow Jones industrial average broke a seven-day slide Tuesday after traders sifted through the market for beaten-down stocks.
The Dow rose 57 points, or 0.6 percent, after dropping 7.3 percent in the past two weeks and reaching its lowest level since October. Traders were looking to pick up stocks while they’re still cheap, but the buying was selective, and there were more losing stocks than gainers on the New York Stock Exchange. The Dow rose as much as 172 points in morning trading but also fell into the red by midafternoon.
“There are pockets of opportunity out there. There are some areas with good valuations,” said Aaron Reynolds, senior portfolio analyst at Robert W. Baird in Milwaukee.
High-tech and oil-service companies were among the market leaders. But retailers slumped amid downbeat comments from analysts and ahead of reports later in the week on June sales. Investors are concerned that a weakening of the economic recovery will keep cautious consumers out of stores. Macy’s fell 2.5 percent, while Home Depot lost 1.5 percent.
The unevenness to the day’s moves signaled that traders remain on edge about the economy.
The day’s economic news didn’t offer investors much incentive to buy. The Institute for Supply Management, a trade group of purchasing executives, said growth in services businesses slowed last month. Its services index fell to 53.8 from 55.4 in May.
Economists polled by Thomson Reuters forecast a reading of 55. Anything above 50 indicates growth.
Brian Dolan, chief currency strategist at in Bedminster, N.J., said a rise in Treasury prices made it clear that worries remain. Treasurys have been rallying during the past month as investors concerned about where the economy was heading looked for a safe place for their money.
“We’ve obviously ratcheted down the outlook, and now it’s a question of how much further,” Dolan said, referring to the economy.
The Dow rose 57.14, or 0.6 percent, to 9,743.62. The broader Standard & Poor’s 500 rose 5.48, or 0.5 percent, to 1,028.06, and the Nasdaq composite rose 2.09, or 0.1 percent, to 2,093.88.
