Dow off 18
on profit-taking

NEW YORK -- Stocks fell modestly today in heavy trading as investors secured some gains from yesterday's rally, which put the Dow Jones industrial average above 8,000 for the first time.

The Dow Jones industrial average fell 18.11 to close at 8,020.77 despite a big gain by Merck, which reported better-than-expected earnings. The blue-chip barometer briefly dipped under the 8,000-mark during the last hour of trading, but bounced right back as bargain hunters moved in.

Decliners outnumbered advancers by a 9-to-8 margin on the New York Stock Exchange, with 1,296 up, 1,586 down and 555 unchanged. NYSE volume was 629.06 million shares vs. 646.03 million yesterday.

The Standard & Poor's 500-stock list fell 5.01 to 931.58, and the NYSE composite index fell 2.28 to 482.96. The Nasdaq composite index fell 11.65 to 1,568.98, and the American Stock Exchange composite index fell 0.69 at 637.34.

Broad-market indicators pulled back as interest rates moved higher from yesterday's seven-month low in the bond market.

The stream of generally strong second-quarter profits continued today with better-than-expected reports from Dow components Merck, Sears Roebuck, and McDonald's. But the big event of the day was expected after the closing bell when Microsoft was to release its results.

Yesterday technology shares led a broad rally spurred by a mixture of more good news on company profits, inflation and interest rates. The Dow gained 63 points, breaking above 8,000 less than 21/2 years after it crossed 4,000.