Stocks struggle higher after earnings, economic reports

NEW YORK -- Investors got the solid results from Goldman Sachs they had been looking for Tuesday, but found little else to calm their nerves about the fragile state of the economy.

Stocks fluctuated in a narrow range throughout the day, with some gaining on a handful of strong earnings, and others held in check by downbeat economic data. Treasurys tumbled on news of a jump in inflation.

You're seeing one step back, one step forward and no one is really sure which way to go," said Doug Roberts, chief investment strategist at Channel Capital Research. "It's an environment of paralysis."

The Dow Jones industrial average rose 27.81, or 0.3%, to 8,359.49. The Standard & Poor's 500 index rose 4.78, or 0.5%, to 905.83, while the Nasdaq composite index rose 4.78, or 0.4%, to 1,799.73.

The days's economic reports, though, were troubling. Retail sales posted their largest gain in five months in June, but much of that increase came from higher gas prices, which could become a worry over the long term. Investors were also uneasy after a separate report showing wholesale prices rose far more than expected in June and the most since November 2007, due partly to higher energy prices.

The 1.8% jump in the producer price index, which tracks the costs of goods before they reach store shelves, was much more than the 0.9% gain economists expected. That sent Treasurys falling and their yields climbing.

Anticipation of Goldman's earnings report sent the entire stock market soaring Monday, so the release of the report came as something as an anti-climax. Meanwhile, the economic data reminded investors of the challenges businesses still face.

"There's just a general lack of enthusiasm in this market," said Darin Newsom, senior analyst at DTN. "We need a general consistent pattern of bullish news coming out to turn this market around."