Stocks end nearly flat after rally fades

Major U.S. stock indexes ended nearly flat Thursday after an early rally lost its strength toward the end of the day.

The Standard & Poor’s 500 index managed to hold on to a tiny gain, extending its winning streak to a third day. The benchmark index, which is within 0.7% of the all-time high it set July 26, is still slightly down for the week.

Healthcare, technology, utilities and other sectors rose, largely outweighing losses elsewhere in the market Thursday. Bond yields were little changed.

The market rallied in the early going as investors weighed a batch of encouraging economic reports. The positive data reinforced the outlook from the Federal Reserve, which projects slower economic growth but not a recession.

On Wednesday, the Fed reduced its benchmark interest rate for the second time this year in a bid to keep the economy from stalling in the face of slowing economic growth overseas and uncertainty over the U.S.-China trade war.

The S&P 500 rose 0.06 of a point, or less than 0.1%, to 3,006.79. The Dow Jones industrial average gave up an early gain, slipping 52.29 points, or 0.2%, to 27,094.79. The Nasdaq squeaked out a gain of 5.49 points, or 0.1%, to 8,182.88. The Russell 2000 index of smaller-company stocks ended down 6.87 points, or 0.4%, at 1,561.47.

Bond prices were little changed. The yield on the 10year Treasury held at 1.78%.

Traders were encouraged Thursday by new economic snapshots, including data indicating U.S. home sales rose sharply last month and an index of manufacturing activity that beat analysts’ forecasts. Applications for U.S. unemployment aid edged up last week but still totaled less than what economists projected.

Financial and industrial stocks were among the losers. Regions Financial slid 1.4%. Southwest Airlines declined 2%. Energy stocks, which rallied earlier in the week as crude oil prices soared following an attack on key oil facilities in Saudi Arabia, also declined.

Several home builders rose after the National Assn. of Realtors said that sales of previously occupied U.S. homes climbed last month to a seasonally adjusted annualized rate of 5.49 million units.

U.S. Steel sank 11.2% after it warned investors that its third-quarter loss will be wider than anticipated.

Darden Restaurants fell 5.1% after the owner of the Olive Garden and other restaurant chains reported quarterly results that disappointed investors.