With Hurricane Ivan threatening oil rigs in the Gulf of Mexico, crude futures moved higher for the second straight day. A barrel of light crude settled at $44.39, up 52 cents, on the New York Mercantile Exchange.

Sluggish automotive sales resulted in a 0.3 percent drop in retail sales for August, worse than the 0.1 percent economists had expected. However, when auto sales were removed from the equation, sales were actually up slightly for the month — though not enough to completely assuage Wall Street's concerns or encourage most investors to make new buys.

"People are very hesitant to make mistakes. To make a commitment right now, it's like being in a life raft out in the middle of the ocean by yourself," said Michael Murphy, head trader at Wachovia Securities in Baltimore.

According to preliminary calculations, the Dow Jones industrial average was up 3.40, or 0.03 percent, at 10,318.16. Broader stock indicators were also narrowly higher. The Standard & Poor's 500 index gained 2.51, or 0.2 percent, to 1,128.33, and the Nasdaq composite index was up 5.02, or 0.3 percent, at 1,915.40.

While the overall retail sales report from the Commerce Department was disappointing, diffusing the positive momentum from July's 0.8 percent increase, the reading was better once auto sales were removed. Without them, retail sales rose 0.2 percent for the month, in line with Wall Street's expectations.

However, Wall Street was concerned that consumers remain nervous and may cut their spending further.

Investors sent U.S. automakers' shares lower; Ford Motor Co. and General Motors Corp. have already cut back production on 2005 models due to soft demand. Ford lost 12 cents to $13.98, and General Motors fell 35 cents to $42.65, while DaimlerChrysler AG edged 2 cents higher to $43.53.

Other sectors that lost ground today included materials and utility stocks, while healthcare, consumer discretionary stocks and technology made gains.

Home decor chain Pier 1 Imports Inc. saw its sales fall in the latest quarter, sending its earnings 43 percent lower from a year ago. While Pier 1 beat analysts' forecasts by a penny, the company lowered its 2004 outlook. Pier 1 nonetheless gained $1.06 to $18.90.

McDonald's Corp. rose 43 cents to $27.60 after the fast-food company raised its annual dividend from 40 cents to 55 cents, a $690 million increase in its payout to investors.