Wall Street: Thursday close

MARKETS marked time on new data indicating that the recovery in the US economy might not turn out to be the cracker many investors had hoped.

The Dow Jones Industrial Average, up 4.8% on the year even after Wednesday's 130-point decline, inched higher by 15.29 points or 0.15% to 10,517.14. The Nasdaq Index, which started the day off 4.5% since 1 January, gained 7.89 points or 0.42% to 1,854.13.

News that Enron's accounting firm Arthur Andersen had been indicted by the US Justice Department on criminal charges of obstructing justice for destroying documents in the US and UK came after the close of the trading. The indictment, widely telegraphed, is not expected to have a major impact on share trading.

Andersen, which some legal experts say could be forced to file for bankruptcy protection, slammed the indictment ahead of time by calling it 'a gross abuse of Governmental power.' Andersen, one of the 'Big Five' accounting firms, has lost a number of important clients, but still has retainers with an estimated 2,000 companies.

Shares had opened lower after the Commerce Department reported that business investories rose 0.2% in January, surprising economists who had, on average, expected a draw-down of 0.4%. Retailing inventories jumped 1.4%, reinforcing Wednesday data showing store sales weaker than expected in February.

At least one economist said the latest figures indicated that the milder than expected slump might be followed by a milder than expected recovery and that the rally in share prices since September might have outstripped any rebound in profits.

But John Forelli, portfolio manager at John Hancock Funds, counselled patience while the recovery took hold and passed on its strength to company bottom lines. 'We are at the point where the economy's improving but company earnings have not yet improved,' he said. 'We are probably not going to hear good things from companies until the second half.'

Some analysts were less optimistic on certain sectors. Credit Suisse First Boston came out with a negative take on information technology, saying that a rebound in orders was a 'no show.' Its comments weighed on personal computer makers Compaq, down 32 cents or 2.9% to $10.68, Hewlett-Packard, off 61 cents or 3% to $19.50, and Dell, lower by 92 cents or 3.4% to $25.92.

Toys R Us, the second biggest toy retailer, fell $1.38 or 6.8% to $18.93 after it blamed cutting jobs and closing stores for a 37% profit decline in its latest quarter. Discount broker Charles Schwab blamed the costs of its restructuring for its lower quarterly numbers and its shares were marked down 30 cents or 2% to $14.50. A downgrade from investment firm Lehman hit telecom Sprint, with its shares losing 57 cents or 3.6% to $15.35.

Photographic company Eastman Kodak, was among the biggest gainers in the Dow, surging $1.36 or 4.4% to $32.36, as it re-affirmed its forecasts yet again. Among other Dow movers, heavy equipment maker Caterpillar added $1.17 or 2% to $58.66, Boeing fell $1.76 or 3.6% to $47.46 and JP Morgan eased 42 cents or 1.2% to $34.95. Food maker HJ Heinz climbed 70 cents or 1.7% to $41.24 after its quarterly numbers came in on target.

Israeli pharmaceutical Teva saw its shares jump $1.90 or 3.5% to $57 after it said that a court ruling would open the way for it to make a generic competitor to Glaxo's anti-biotic Augmentin. Viagra manufacturer

Pfizer was flat at $39.99 on a report that a US State Attorney was looking into the marketing of one of its drugs.

Coca-Cola closed virtually unchanged at $47.92 after Goldman Sachs said that it came away with positive feelings from a meeting with Coke management in Japan.