AP Business WriterNEW YORK (AP) -- Wall Street's latest attempt at a rally fizzled Monday, as investors decided they were better off collecting their small wins rather than risking further pullbacks.

Blue chips closed slightly higher, while technology shares stalled.

The market was also unnerved by word that an American citizen had been arrested for plotting to explode a radioactive "dirty" bomb. Although the news failed to prompt a selloff, it did limit investors' enthusiasm.

"All of these things have investors on the edge because they lower the premium that investors are willing to pay for long-term assets," said Ron Hill, investment strategist at Brown Brothers Harriman & Co.

The Dow Jones industrial average closed up 55.73, or 0.6 percent, at 9,645.40, according to preliminary calculations, retreating from a 128-point gain earlier in the session. Last week, the average fell 335.58 points.

Broader stock indicators fluctuated. The Standard & Poor's 500 index rose 3.21, or 0.3 percent, at 1,030.74, and the Nasdaq composite index fell 4.79, or 0.3 percent, at 1,530.69.

Retail stocks were mostly higher. Wal-Mart advanced $1.97 to $56.40 on word its June sales at stores open at least a year should be at the high end of forecasts, while Kohl's rose $1.17 to $75.

Energy stocks were mixed. Williams Cos. gained 11 cents to $8.59 after the company lowered its 2002 forecast but announced efforts to reduce exposure to its energy risk management operations. But Duke Energy dropped 91 cents to $29.09 after Merrill Lynch downgraded the stock, citing pressure created by a government investigation into whether energy traders manipulated prices in California.

In technology, Nokia dropped 30 cents to $12 ahead of a midquarter update expected Tuesday. Many analysts are expecting the telecommunications company to lower its forecast.

Intel fell 93 cents to $21.07, adding to the 18.5 percent it lost Friday after warning that second-quarter sales would be lower than expected. And Instinet gained 5 cents to $7.10 on word it was buying rival Island in a $508 million deal. Both companies have platforms that trade stocks for investors.

Stocks have been falling for several weeks, but investors have not rushed in to take advantage of the declines. Analysts say a mix of lackluster earnings prospects, fears of more terror attacks and ongoing accounting scandals have made stocks appear more risky -- and therefore less attractive -- to many investors.

On Monday, Attorney General John Ashcroft accused a U.S. citizen of conspiring with al-Qaida to build and explode a radioactive "dirty" bomb.

Even a report by Goldman Sachs chief investment strategist Abby Joseph Cohen that the Dow and S&P should be trading at levels 20 percent higher than they currently are failed to inspire buying. Cohen said the Dow should be at 11,300 and the S&P 500 should be at 1,300.

"It's more of the same. There are a lot of investigations going on right now. And it's hard to have a lot of confidence," said Robert Harrington, head of listed block trading at UBS Warburg. "The mood is cautious, because every time you take on more risk, you get hurt."

Advancing issues led decliners 8 to 7 on the New York Stock Exchange. Volume came to 1.21 billion shares, compared with 1.80 billion shares Friday.

The Russell 2000 index fell 1.22 to 469.22.

Overseas, Japan's Nikkei stock average fell 0.6 percent. In Europe, Germany's DAX index fell 0.5 percent, Britain's FTSE 100 rose nearly 0.2 percent, and France's CAC-40 gained 0.1 percent.

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