The Dow Jones industrial average fell 39.66 to 6,477.35, bringing its loss over the past five sessions to about 400 points and leaving the blue-chip barometer less than 30 points above its 1997 starting point. Less than a month ago, the blue-chip barometer was sporting a robust gain of about 637 points, or nearly 10 percent, for the year.

Decliners outnumbered advancers by a 12-to-7 margin on the New York Stock Exchange, with 921 up, 1,585 down and 804 unchanged. NYSE volume totaled 495.47 million shares vs. 478.14 million yesterday.

The Standard & Poor's 500-stock list rose 0.21 to 750.32, and the NYSE's composite index fell 0.97 to 394.40. The Nasdaq composite index rose 12.77 to 1,213.77, but is still down about 6 percent for the year and 12.5 percent from its high.

Underscoring investors' continuing preference for the perceived safety of bigger companies, the American Stock Exchange index fell 3.37 to 557.82, and the Russell 2000 list of smaller companies fell 1.41 to 336.38.

There was some selective bargain hunting in beleaguered sectors such as technology, health care and financial services, which helped push the Standard & Poor's 500 list and the Nasdaq composite index into positive territory.

Stocks remained under pressure from the bond market, where long-term interest rates continued to flirt with a six-month high.