NEW YORK - The stock market turned in a mixed performance Thursday, pressured by profit-taking and persistent questions about the economy's ability to produce stronger corporate earnings. Trading was light.

The Dow Jones industrial average spent the day in negative territory, finishing with a loss of 7.94 points at 1,838.13.

Advancing issues edged out losers 801-736 among the 1,951 issues traded.

Broader market indicators inched higher. The New York Stock Exchange composite index rose 0.23 to 138.81. Standard & Poor's 500-stock index rose 0.36 to 241.49. The price of an average share added 7 cents.

On the Big Board, 109,060,000 shares changed hands, compared with 127,350,000 Wednesday.

Composite volume of stocks traded on all U.S. exchanges and over the counter was 126,653,550 shares, compared with 148,389,440 in the previous session.

Analysts said the government's report Thursday that U.S. retail sales fell 0.1 percent in May disappointed the market. The data was significantly weaker than economists had anticipated.

Hugh Johnson, head of the investment policy committee at First Albany, said the stock market is "begging for evidence" that the economy will respond to reduced interest rates and the lower dollar.

"So far, the market isn't seeing that response and investors, be they large or small, are losing patience," Johnson said.

Johnson said that while for months, the stock market's progress has been closely tied to that of the bond market, equities are now "hostage" to economic data.

On the trading floor, Diamond Shamrock was the most active NYSE-listed issue, dropping 3 /8 to 11 3 /8.

Takeover target Fruehauf followed, rising 5/8 to 45 1/4.

Phillips Petroleum was third, easing to 94 5/8. An explosion Thursday at a Merck & Co. chemical plant in Puerto Rico killed three employees and injured five others, the company said.

Union Carbide added 5/8 to 22 1/2. Union Carbide Corp. announced Thursday acceptance of a conditional court decision to move the trial of suits filed in the Bhopal chemical leak disaster to India.

Philadelphia Electric added 5/8 to 18 3 /8. Pennsylvania's divided Public Utility Commission Thursday moved a step closer to granting the company the largest rate increase in that state's history to pay for the Limerick Unit No. 1 nuclear reactor.

Investors continued to focus on the textile group. Burlington Northern advanced 1 5/8 to 66 5/8, J.P. Stevens added 1 5/8 to 33 1/4 and Collins & Aikman rose 3 /4 to 36 5/8.

Manor Care added 1 1/4 to 24 after being added to Standard & Poor's 500-stock index. The issue replaced RCA, which was bought by General Electric.

Prices rose in active trading on the American Stock Exchange.

Wickes led the Amex actives, rising 5/8 to 6 3 /8. Horn & Hardart followed, rising 1/4 to 15 3 /8. Trading in Horn & Hardart was halted briefly in the afternoon and resumed after the company said it would begin an offer of common stock for 11 percent notes. Horn & Hardart warrants were third, adding 1/2 to 5 3 /8.

The American Stock Exchange index added 1.12 to 279.94. The price of an average share gained 6 cents. Advances led declines 297-280 among the 814 issues traded. Composite volume totaled 20,186,830, compared with 14,198,000 traded Wednesday.

The National Association of Securities Dealers index of OTC stocks rose 1.09 to 396.53.