There were more advancers than decliners on the New York Stock Exchange, a sign that investors are far from panicky.

The Dow Jones industrial average has held on to more than half the 997 points it gained in the six days leading up to the war and the two sessions that followed the start of fighting.

"The rally we saw a week or so ago does show that there is a desire to be back in stocks," said Susan L. Malley, chief investment officer for Malley Associates Capital Management, add ing that her firm is "not ready to pour money back into stocks yet, but we have put a little more into equities than we had before the war."

The Dow closed down 55.68, or 0.7 percent, at 8,145.77, according to preliminary calculations. It incurred a three-day loss of 134.46. For the week, the blue chips lost 4.4 percent.

The broader market also retreated for a third day and for the week overall. The Nasdaq composite index fell 14.73 today, or 1.1 percent, to 1,369.52. The Standard & Poor's 500 index fell 5.04, or 0.6 percent, to 863.48.

For the week, the Nasdaq gave back 3.7 percent and the S&P forfeited 3.6 percent.

Investors have been collecting profits this week from the prewar rally, but the Dow has retained about 555 points, nearly 56 percent of its 997-point advance.

Fears that the fighting in Iraq will last longer than investors anticipated have been responsible for this week's selling, though their effect has waned as market losses moderated. Wall Street is concerned that if the war drags on, consumers and businesses will become more cautious.

Economic news contributed to today's declines. The Commerce Department reported consumer spending was flat for a second straight month in February as people clamped down amid job and war worries and higher energy prices.

Investors are particularly sensitive to news about consumer spending, which accounts for two-thirds of the economy, though today's reading was better than the 0.2 percent decline forecast by economists.

The Commerce Department also said Americans' incomes rose by a modest 0.3 percent in February, down from a 0.4 percent advance the previous month.

And the University of Michigan's consumer sentiment index for March fell to 77.6 from 79.9, according to Dow Jones News wires. Still, economists were expecting war worries to erode sentiment further.

Analysts were heartened to see the market hold up fairly well in the face of war uncertainty and lackluster economic news. Some believe investors are becoming cautiously optimistic, enough to make some bets.

"Investors are looking through the current war-related concerns to what might be in store (later this year)," said Charles G. Crane, strategist for Victory SBSF Capital Management. "Assuming that (war) doesn't take several months ... what I see is an economy that is in satisfactory condition, not great, and pros pects for single-digit earnings growth in 2003 and 2004."

Barr Laboratories fell $1.48 today to $56.32 after Merrill Lynch downgraded it to "neutral" from "buy." British Airways declined 88 cents to $17.27 after J.P. Morgan cut its earnings outlook.

UAL rose a penny to 85 cents on its last day of trading on the NYSE, which announced it was delisting the troubled parent of United Airlines for failing to meet minimum share price standards.

Dell Computer slipped 14 cents to $27.70 ahead of a meeting next week with equity analysts.

Avon Products climbed $1.35 to $56.90 after raising its first-quarter profit estimate.

BJ's Wholesale Club rose 44 cents to $11.50 after Jefferies & Co. upgraded the retailer to "hold" from "underperform."

Advancing issues claimed a 14-to-13 lead over decliners on the NYSE. Trading volume was again light, as in the weeks leading up to the war and since fighting began March 19.