Dow Slips 2.97 as Oil Prices Steady

Wall Street stocks closed with modest losses today, as a relatively calm day in the oil markets provided a respite for stocks.

The Dow Jones industrial average closed down 2.97 points at 2,612.62. In the broader market, declining issues led advancers by a 4-3 margin. Volume on the New York Stock Exchange was a light 113.22 million shares against 119.73 the previous session.

Traders said that with oil prices little changed, there were few factors to affect the stock market. The benchmark U.S. grade of oil closed down 30 cents at $31 a barrel on the New York Mercantile Exchange.

The market continued to show some concern about higher oil prices, analysts said. On Monday, the Dow closed 3.96 points lower after oil prices spurted upward.

Investors also remain wary about interest rates, analysts say. Rumors over the last few days have said the Federal Reserve was about to ease rates, but the central bank failed to act.

An additional uncertainty in the market was the fate of budget negotiations in Washington, said William R. Rothe, a managing director at Alex. Brown & Sons Inc. in Baltimore.

Rothe said there are “too many issues that remain unresolved” for investors to commit money to stocks.

The market received no help from abroad. Stock prices closed lower in Japan and London.

Among most-active blue chip issues on the NYSE, AT&T; was up 1/2 at 30 7/8, Philip Morris rose 1/8 to 45 and IBM rose 3/8 to 106 1/4.

The NYSE’s composite index of all its listed common stocks fell 0.50 to 176.20. At the American Stock Exchange, the market value index slipped 0.33 to 322.88.

Bond prices were little changed in early trading today as most players sat on the sidelines waiting for some news that could move the market.

The Treasury’s bellwether 30-year bond rose 3/32 point, or nearly 94 cents per $1,000 face amount. Its yield, which moves in the opposite direction from price, fell to 8.95% from 8.96% late Monday.

Analysts said trading was very light as investors waited for further news from the Middle East.

They also were watching budget talks in Washington, where negotiators passed a self-imposed Monday deadline for reaching agreement on $50 billion in spending cuts.

Oil prices, which helped send the bond market lower Monday, were relatively stable today. The near-term contract for light, sweet crude oil was off 15 cents to $31.15 a barrel on the New York Mercantile Exchange in late morning.