Stocks flat after day of big gains

Stock indices were flat Wednesday after a big gain to open the trading year.

Specialty stores such as Bed Bath & Beyond rose after a report that mall shopping was strong in the days after Christmas. Bank stocks, health-care companies and utilities fell slightly.

But nothing moved much. Investors appeared content with Tuesday’s gain of almost 180 points in the Dow Jones industrial average, which brought the Dow to its highest level since July.

“It’s healthy to see that after a big rally,” said Randy Warren, chief investment officer for Warren Financial Service. “People need to sit back and think about it.”

Just before 2 p.m. EST, the Dow was up 14 points at 12,411. The Dow lost 60 points in early trading, then came back to break even at midday. The Standard & Poor’s 500 index was up a third of a point at 1,277. The Nasdaq was up a fifth of a point at 2,648.

Retailing-industry stocks rose 0.8 per cent as a group, after the report on after-Christmas sales, which were up 5.3 per cent compared with a year ago. Bed Bath & Beyond Inc. rose 2.4 per cent, and Ross Stores Inc., which sells discounted clothes, was up 2.3 per cent.

However, Wal-Mart Stores Inc. fell 1.2 per cent, making it the biggest decliner among the Dow’s 30 stocks. Target Corp. fell 2.3 per cent. Analysts have been concerned that some stores raised holiday sales with deep discounts that will hurt profits.

Automakers delivered a strong end to 2011. Analysts had been expecting December to be a strong sales month for cars on the theory that more confidence in the economy would unlock pent-up demand. Ford Motor Co. stock rose 29 cents to $11.43.

European markets declined, and the euro fell back below $1.30, to $1.2945, within a penny of its lowest level in a year. Another increase in borrowing costs for Italy renewed worries about Europe’s efforts to restore confidence in its debt-hobbled governments.