While the Dow Jones industrials and Nasdaq composite index managed to end the session higher, the broader market as seen through the Standard & Poor's 500 index fell. And overall, more stocks dropped than advanced.

Congressional testimony by Federal Reserve Chairman Alan Greenspan provided investors with little guidance, analysts said. Greenspan said the market's decline this summer and early fall and concerns about Iraq had helped weaken the economy, yet he also described the economy as "remarkably resilient."

The Dow closed up 12.49, or 0.2 percent, at 8,398.49, according to preliminary calculations, after climbing as much as 107 points and falling as much as 81.

The Nasdaq climbed 11.71, or 0.9 percent, to 1,361.27.

But the S&P 500 index slipped 0.42 to 882.53.

"A lot of people would like to feel that there is a reason to be in the market," said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray in Minneapolis, adding that investors saw few reasons to make major moves today.

Stocks began the day lower amid fears of terrorism. Investors were unnerved following reports yesterday that a tape recording purportedly by Osama bin Laden had been found and that on it he had praised terrorist attacks in Bali and Moscow last month.

But news that Iraq was agreeing to a U.N. resolution calling for weapons inspections lifted the market. The specter of war with Iraq contributed to a three-day slide in stocks that began late last week and continued in Monday's session. Prices were generally higher yesterday.

Then by late afternoon, stocks were down again before ending mixed. For truly sustainable gains, analysts said investors must see Iraq comply with the inspections along with consistent, definite improvement in earnings and the economy.

"The shorter-term implication of Iraq is weighing on people's minds. How will it affect the Christmas season? How many are fearful there will be domestic retaliation here," said Ned Riley, chief investment strategist at State Street Global Advisors.

Nordstrom dropped $2.91 to $19.12 after the upscale department store company issued a third-quarter profit warning.

Sears fell $1.70 to $21 on a downgrade from Goldman Sachs.

Dow industrial Citigroup fell $1.39 to $35 following a report in The Wall Street Journal. The report said e-mails by former analyst Jack Grubman, at the company's Salomon Smith Barney unit, indicated he raised his rating on AT&T to help Citigroup CEO Sandford I. Weill win a power struggle within the company.

But Campbell Soup rose $1.63 to $21.42 on fiscal first-quarter earnings that were 3 cents a share higher than analysts anticipated.

And, Tiffany climbed $1.76 to $26.59 on third-quarter earnings that were a penny a share higher than expectations.