The Dow Jones industrial average lost 35.41 points to close at 6,726.88, snapping a streak of four straight record highs. The blue-chip barometer nearly erased an early 58-point slide before sagging toward the close.
NYSE volume totaled 524.99 million shares, versus 531.30 million yesterday. The Standard & Poor's 500-stock index fell 1.61 to 767.25, and the NYSE's composite index fell 0.03 to 405.04. The Nasdaq composite index slid 12.65 to 1,333.71, and the American Stock Exchange index fell 1.87 to 586.48.
The broader measures also bounced back from the morning's lows, with some briefly moving back into record territory before falling into negative territory.
Stocks were pressured in the morning by the bond market, which gave back some of yesterday's big gains, sending the yield on the 30-year Treasury bond - a key determinant of borrowing costs - as high as 6.82 percent from late yesterday's 6.76 percent. But stock prices improved in the afternoon as the long-bond yield eased to 6.79 percent.
With no major economic data due for release today, the spotlight shifted to profit reports from the last quarter of 1996.
Intel Corp. fell sharply. It reported unexpectedly strong fourth-quarter profit yesterday, but also cautioned that first quarter revenues will be flat while expenses rise.