NEW YORK — The stock market finished at about the same place where it started Monday as traders waited for a packed week of reports that will give them a better view of where the economy is headed. The Dow Jones industrial average remained stuck in a 52-point range throughout the day, ending the day 10 points above the 11,000 milestone.
Bond trading was closed for Columbus Day.
Traders have been pushing the stock market higher over the past two weeks, expecting that the Federal Reserve will act in the coming weeks to stimulate the economy and drive interest rates lower. If the Fed announces an expansion of its bond- buying program at its next meeting in early November, traders assume that investors will begin buying stocks again because low interest rates will make bonds less appealing.
Tom Samuels, managing partner at Palantir Capital Management, said the stock market has welcomed disappointing reports in recent days because that adds to the expectations the Fed will act soon.
“The market is trying to convince itself that good news is good news and bad news is good news,” Samuels said.
The Dow has risen in five of the past six weeks and is less than 2 percent from its highest level of the year, which it touched in late April.
Interest rates have also been plummeting in anticipation of the Fed’s move.
“The 10-year rate is going to make stocks look cheaper and cheaper compared to bonds,” said Bob Phillips, managing partner at Spectrum Management Group.
Traders will get key economic reports at the end of the week, including data on inflation, retail sales and consumer sentiment. The Fed has said part of the reason it might buy bonds is to get inflation more in line with historical levels.
The Dow Jones industrial average gained 3.86, or 0.04 percent, to close at 11,010.34.
The Standard & Poor’s 500 index rose 0.17 to 1,165.32, while the Nasdaq composite index rose 0.42, or 0.02 percent, to 2,402.33.
