Dow Backs and Fills, Finally Ends Up 3.22 : Wall St.: Trading session turns cautious following an early wave of profit taking.

NEW YORK —  Prices closed modestly higher in a cautious session on Wall Street today as traders kept a wary eye on Middle East developments and the price of oil.

The Dow Jones industrial average rose 3.22 to 2,614.85.

Advancing issues outnumbered decliners by a margin of about 4 to 3 on the New York Stock Exchange, with 813 up, 661 down and 498 unchanged.

Big Board volume totaled a relatively light 127.65 million shares, against 160.15 million in the previous session.

The NYSE’s composite index rose 0.08 to 176.26.

At the American Stock Exchange, the market value index rose 1.05 to 321.78.

After an early wave of profit-taking, the market traded in a narrow range, with the industrial average changing direction several times.

Analysts said the market did not have enough momentum to carry the gains of the previous two sessions--in which the Dow Jones average surged more than 128 points--into another day.

“Players don’t want to commit in either direction,” said Dennis Jarrett, an analyst with Kidder Peabody & Co.

Traders continued to watch the Middle East closely for any developments that could sway the market. Late in the Wall Street day, the Iraqi News Agency reported that President Saddam Hussein declared all women and children foreigners in his country would be free to leave the country on Wednesday.

Oil prices, which plunged on Monday, regained some ground today, keeping the stock market in check. The near-term price for light, sweet crude rose 97 cents to $27.88 a barrel today after falling $4 Monday on the New York Mercantile Exchange.

U.S. Treasury bond prices retreated in moderate trading today following a huge oil-related rally in the previous session.

The yield on the government’s bellwether 30-year bond jumped above the 9% level again--trading at 9.01% by midday, up from 8.99% late Monday.