Market dips as Fed caution offsets earnings cheer

By Jennifer Coogan

Macy's Inc added to pessimism late in the session after it released dismal sales figures, raising anxiety about Thursday's wave of sales results from a slew of other retailers.

The comments may cast some doubts on the Fed's ability to keep cutting interest rates. Traders had speculated earlier in the week that the Fed would need to make another emergency interest rate cut following surprisingly negative reports on job creation and service-sector growth.

The Dow Jones industrial average was up 8.45 points, or 0.07 percent, at 12,273.58. The Standard & Poor's 500 Index was down 0.56 point, or 0.04 percent, at 1,336.08. The Nasdaq Composite Index was down 6.88 points, or 0.30 percent, at 2,302.69.

Stocks had started the session higher after financial results from Walt Disney Co and Time Warner Inc fed optimism that companies outside the financial sector have performed well.

(Reporting by Jennifer Coogan; editing by Gary Crosse)