NEW YORK -- Wall Street mostly retrenched today, as investors couldnt resist a chance to cash in quick gains from a two-day rally. Still, the Dow Jones industrials easily posted their seventh week of gains, the longest streak in more than four years.
Analysts said a pullback was somewhat expected after a two-day surge pushed stocks to their highest level in months. Lighter trading in advance of the Thanksgiving holiday also contributed to price swings.
"Were having a bit of pause after yesterdays big rally," said Ed Peters, chief investment officer at PanAgora Asset Management Inc. "With the advance being so quick, people are reassessing."
The Dow fell 40.31, or 0.5 percent, to close at 8,804.84, according to preliminary calculations, to snap a two-day gain of 370 points. On Thursday, blue chips closed at their highest level since Aug. 26, when it stood at 8,919.01.
The broader market finished mixed. The Nasdaq composite index inched up 1.18, or 0.1 percent, to 1,468.73, after closing Thursday at a level not seen since July. The Standard & Poors 500 index declined 3.21, or 0.3 percent, to 930.55.
For the week, the Dow gained 2.6 percent to post its seventh winning week, a feat not seen since the period ended March 20, 1998. The Nasdaq climbed 4.1 percent and the S&P 500 rose 2.3 percent, their sixth week of gains in seven weeks.
Analysts said investors have been upbeat after Wall Streets recent rally and are generally looking to buy since the end of the year traditionally has been the strongest time for stocks.
But analysts caution that stocks remain vulnerable to declines due to profit-taking as well as concerns about terrorism and a war with Iraq.
Philip S. Dow, managing director of equity strategy at Dain Rauscher Wessels, said he believes the market has the potential to see an additional 5 to 7 percent of gains by years end, as money managers scramble to avoid missing out on the recent advance.
"What Im seeing more and more is people saying maybe we have seen the lows" reached in October, he said. "Theres a real performance anxiety out there right now for people to get invested."
Brocade Communications dropped $2, or 27.5 percent, to $5.28 after the data storage networking company warned of lower-than-expected first-quarter revenue.
Technology company PeopleSoft dropped $1.04 to $19.99 after Salomon Smith Barney cut the companys stock rating, citing overvaluation.
Gainers included Tivo, which rose 47 cents to $6.71, after the digital video recording company reported a narrower-than- expected loss in the third quarter.
Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was moderate.
The Russell 2000 index, which tracks smaller company stocks, rose 2.32, or 0.6 percent, to 400.00.
Overseas, Japans Nikkei stock average finished 1.2 percent higher. In Europe, Frances CAC-40 rose 0.5 percent, Britains FTSE 100 slipped 0.4 percent and Germanys DAX index rose 0.5 percent.
On the Net:
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com
Analysts said a pullback was somewhat expected after a two-day surge pushed stocks to their highest level in months. Lighter trading in advance of the Thanksgiving holiday also contributed to price swings.
"Were having a bit of pause after yesterdays big rally," said Ed Peters, chief investment officer at PanAgora Asset Management Inc. "With the advance being so quick, people are reassessing."
The Dow fell 40.31, or 0.5 percent, to close at 8,804.84, according to preliminary calculations, to snap a two-day gain of 370 points. On Thursday, blue chips closed at their highest level since Aug. 26, when it stood at 8,919.01.
The broader market finished mixed. The Nasdaq composite index inched up 1.18, or 0.1 percent, to 1,468.73, after closing Thursday at a level not seen since July. The Standard & Poors 500 index declined 3.21, or 0.3 percent, to 930.55.
For the week, the Dow gained 2.6 percent to post its seventh winning week, a feat not seen since the period ended March 20, 1998. The Nasdaq climbed 4.1 percent and the S&P 500 rose 2.3 percent, their sixth week of gains in seven weeks.
Analysts said investors have been upbeat after Wall Streets recent rally and are generally looking to buy since the end of the year traditionally has been the strongest time for stocks.
But analysts caution that stocks remain vulnerable to declines due to profit-taking as well as concerns about terrorism and a war with Iraq.
Philip S. Dow, managing director of equity strategy at Dain Rauscher Wessels, said he believes the market has the potential to see an additional 5 to 7 percent of gains by years end, as money managers scramble to avoid missing out on the recent advance.
"What Im seeing more and more is people saying maybe we have seen the lows" reached in October, he said. "Theres a real performance anxiety out there right now for people to get invested."
Brocade Communications dropped $2, or 27.5 percent, to $5.28 after the data storage networking company warned of lower-than-expected first-quarter revenue.
Technology company PeopleSoft dropped $1.04 to $19.99 after Salomon Smith Barney cut the companys stock rating, citing overvaluation.
Gainers included Tivo, which rose 47 cents to $6.71, after the digital video recording company reported a narrower-than- expected loss in the third quarter.
Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was moderate.
The Russell 2000 index, which tracks smaller company stocks, rose 2.32, or 0.6 percent, to 400.00.
Overseas, Japans Nikkei stock average finished 1.2 percent higher. In Europe, Frances CAC-40 rose 0.5 percent, Britains FTSE 100 slipped 0.4 percent and Germanys DAX index rose 0.5 percent.
On the Net:
New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com