Wall Street stocks posted marginal gains despite a strong bond market, where interest rates fell as the latest economic news eased in Hation worries.

The Dow Jones industrial average lost 6.93 points to close at 6,806.16, having recovered from a 46 point slide during the morning.

Broader indicators were mostly positive, but all were little changed from Friday's close.

Trading was rather sluggish though the Treasury market rallied after the National Association of Purchasing Management reported that the nation's manufacturing economy contracted in January following months of surprising strength.

As bond prices rose, the yield on the 30 year Treasury bond - a key determinant of corporate and consumer borrowing costs - fell as low as 6.73 per cent, down from 6.78 per cent late Friday. By late afternoon, the yield stood at about 6.74 per cent.

Another report suggesting some moderation in the economy came from the commerce department which said construction spending fell 0.7 per cent in December.