Markets lose some steam as uncertain Sept. looms

NEW YORK - Stocks closed mostly lower yesterday as the day's news, including an improved outlook from Intel Corp., failed to energize investors.

Summer vacations kept many traders out of the market. With fewer participants, the market lost some of its momentum, which had sent the major indexes up about 5 percent in less than two weeks.

Stocks managed to carve out their sixth weekly advance in seven weeks, but the gains were minimal.

Investors are especially nervous as they head into September, historically the stock market's worst month. Last September saw the collapse of Lehman Brothers and the start of the worst financial crisis in decades.

The first week of September 2009 will bring a key report on manufacturing activity, which has been improving, as well as the Labor Department's monthly report on job losses - the month's most telling piece of economic data. Last month, news that employers cut fewer jobs in July and the unemployment rate fell sent stocks soaring.

Yesterday, the Dow fell 36.43, or 0.4 percent, to 9,544.20. The Standard & Poor's 500 index fell 2.05, or 0.2 percent, to 1,028.93, while the Nasdaq composite index rose 1.04, or 0.1 percent, to 2,028.77.

The market got an initial boost after Intel, the world's largest maker of computer chips, raised the top end of its sales forecast for the current quarter from $8.9 billion to $9.2 billion.

Intel's upbeat report came after the computer-maker Dell Inc. posted better-than-expected results for its May-July quarter late Thursday. While sales continued to fall because of reduced spending by consumers and businesses, Dell said it had seen signs of improvement.