STOCKS turned mixed yesterday after recovering from concerns that robust US sales and other signs of economic strength could upset the tame inflation and interest rate outlook.

Investors initially used a weak bond market as an incentive to take profits on the market's record breaking rally last month. But as usual, the early dip became a buying opportunity, lifting most market measures back near the day's starting points.

Advances outnumbered declines by a narrow margin on the New York Stock Exchange, with 1,279 up, 1,232 down and 814 unchanged. NYSE volume totalled 412.50 million shares, up from 148.53 million on Friday.

The Standard and Poor's 500 stock index fell 0.49 to 756.53, and the NYSE's composite index fell 0.29 to 398.14. The Nasdaq composite index rose 7.21 to 1299.82. The American Stock Exchange's market value index rose 1.45 to 592.93.