Dow ends brutal August with meager gains

NEW YORK (AP) – The stock market ended its worst August since 2001 with meager gains Tuesday after minutes from the latest Federal Reserve meeting showed officials’ increasing concern about the economy.

The Dow rose 4.99, or 0.05 percent, to close at 10,014.72.

Broader indexes were mixed. The Standard & Poor’s 500 index edged up 0.41, or 0.04 percent, to 1,049.33. The Nasdaq composite index fell 5.94, or 0.3 percent, to 2,114.03.

Stock indexes gave up most of their gains in mid-afternoon after the release of the minutes from the Fed’s Aug. 10 meeting. Fed officials said during their discussions that they recognized that the economy might need further stimulus beyond the purchases of government debt the central bank announced that day. Some of the officials acknowledged that economy had softened more than they had anticipated.

The Dow Jones industrial average ended with a gain of five points, having been up 64 following a reading on consumer confidence in August that came in stronger than expected. Stocks fell sharply for much of August after a series of reports suggested that the recovery has weakened.

Some traders said there was disapppointment that the Fed wasn’t pessimistic enough to consider quicker steps to stimulate that economy.

Dan Cook, senior market analyst with the brokerage firm IG Markets, said the minutes gave a picture of a cautious and conservative Fed. While officials acknowledged the economy’s problems, they chose to take only small, initial steps. Traders who have hoped the Fed would be more aggressive to stimulate the economy soon aren’t so sure now that the central bank will act.

“People are thinking maybe we need more of a downturn before the Fed will jump in,” Cook said. Unlike traders, he said, “the Fed moves like a glacier.”

The S&P 500, the measure used most by stock market professionals, finished August with a loss of 4.7 percent, its worst showing for the month since August 2001.