STOCKS traded at slightly depressed levels early as weakness in the bond market struck a sombre note on Wall Street.
Uncertainty about interest rates before the Federal Reserve policy meeting also was expected to keep investors on the defensive.
The Dow Jones average of 30 industrial stocks was off 1.08 at 4,763.07 after one hour of trading. Declining issues led advances 4-3 on the New York exchange.
Market analysts said stocks could stay within a narrow trading range because investors were reluctant to make commitments ahead of the monetary policy meeting today.
When the Federal Open Market Committee, its policy arm, meets in Washington, it is expected to review recent economic data before deciding whether another rate reduction is needed to spur growth.
With that in mind, bond traders reacted negatively to a strong housing report. The National Association of Realtors said sales of previously owned homes rose three per cent in August to the highest level in 15 months as low mortgage rates lured more buyers into the market.
