Stockslost their gains yesterday, shifting direction in light post-holiday trade on a day when major stock gauges rose for most of the day after a steep drop in weekly jobless claims.

The dip in new jobless claims had calmed investor fears about the health of the US economy.

But by late afternoon, the market reversed course. Trading volume was so low that traders cautioned against reading too much into the market's moves. In late afternoon, all major indices dipped into negative territory.

"There wasn't any news to account for the afternoon decline," said Mr Tony Cecin, senior managing director of equities at US Bancorp Piper Jaffray.

"My guess is it's a sell program," he added. "It's one of those days where everyone sits around saying, 'Why are we here?' "

The Dow Jones industrial average fell 0.18 per cent, to 8,432.61, while the broader S&P 500 dipped 0.31 per cent, to 889.66. The Nasdaq composite dropped 0.33 per cent to 1,367.89.

Jobless claims fell to 378,000 in the week ended December 21st from a revised 438,000 in the previous week.

- (Reuters)