Stocks pull back as investors close out 2009

NEW YORK -- The stock market has closed out a remarkable 2009 with a loss as investors bet the improving economy will lead the government to pull back on its stimulus measures. But stocks still managed their best year since 2003 as they recovered from the financial crisis and recession.

News that weekly unemployment claims fell to the lowest level since July 2008 first lifted stocks Thursday, but traders gave back the gains, concerned about the economy's ability to thrive without government help.

Trading was light, exaggerating the market's moves. The Dow Jones industrials are down 120 points, or 1.1 percent, at 10,428. But they are up nearly 19 percent for 2009.

The Standard & Poor's 500 index is down 11, or 1 percent, at 1,115, but is up 23.5 percent for the year.

The Nasdaq composite index is down 22, or 1 percent, at 2,269.

Losing stocks outnumbered advancers by 2 to 1 on the New York Stock Exchange, where volume came to just 676.7 million shares.