Stocks drifted lower in a quiet session in New York yesterday, with most market averages slipping back from the record highs set on Wednesday.

Early gains evaporated as demand waned in the last full session of 1999. On Wall Street, the Dow Jones industrial average fell 31.80, or 0.3 per cent, to close at 11,452.86. Earlier, the Dow was up as much as 84 points. Broader stock indicators were mixed.

The Standard and Poor's 500 rose 1.01 to 1,464.47, and the Nasdaq composite index fell 4.59 to 4,036.87.

Advancing issues outnumbered decliners by a 9-to-7 margin on the New York Stock Exchange, with 1,774 up, 1,371 down and 425 unchanged.