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Investors take breather
following 6-day advance
NEW YORK >> Investors retreated modestly on Wall Street yesterday, collecting profits after a six-day advance in the Dow Jones industrials. Analysts called the pullback unsurprising, especially after the Dow's 116-point advance on Monday.
The market also lacked the kind of galvanizing news that sent stocks surging in the previous session -- encouraging economic data and solid news from retailers about Thanksgiving weekend sales.
"After a run-up like we saw Monday, it's normal for people to say, 'I don't want to pay those prices, I'm going to pull back,"' said Barry Berman, head trader for Robert W. Baird & Co. in Milwaukee.
The Dow closed down 45.41, or 0.5 percent, at 9,853.64. Over the previous six trading days, the blue chips gained 279.63.
The broader market gauges also closed lower. The Nasdaq composite index ended the day down 9.75, or 0.5 percent, at 1,980.07. The Standard & Poor's 500 index lost 3.50, or 0.3 percent, to close at 1,066.62.
Advancers edged decliners on the New York Stock Exchange. Volume was light, with 1.38 billion shares traded, compared with 1.35 billion shares at the same point Monday.
The Russell 2000 index closed down 0.99, or 0.2 percent, at 553.60. The NYSE composite index lost 7.73, or 0.1 percent, to 6,139.62. The American Stock Exchange composite index rose 4.62, or 0.4 percent, to 1,117.17.
The Treasury's two-year note gained 2/32 to 99 2032, with its yield falling 3 basis points to 2.06 percent. The 10-year note rose 2/32 to 98 3 1/32, with its yield dipping 1 basis point to 4.38 percent.
Viacom Inc. gained 7 cents to close at $39.64 following news it was nearing a decision to sell its majority interest in video rental company Blockbuster Inc. UBS rated Viacom at a "buy" after The Wall Street Journal reported the company was poised to unload the unit. The video store chain lost 29 cents to close at $16.94.
AT&T Corp. ended the day down 8 cents at $20.27 after Betsy Bernard stepped down as president to pursue other opportunities; the company named William J. Hannigan, chairman and chief executive of Sabre Holdings Corp., to succeed her.
PepsiCo Inc. declined 57 cents to $48.14 after announcing it would cut 750 jobs and close a Frito-Lay plant in Louisville, Ky., as part of a plan to streamline its operations. The soft drink and snack food company reaffirmed its outlook through the end of the year and forecast double-digit growth in earnings per share for 2004.
Vivendi Universal SA closed down 21 cents at $23.11; the French media and telecommunications company reported third-quarter profits that beat expectations, but warned its end-of-year performance would not be as strong.
Texas Instruments Inc. lost 7 cents to close at $30.11 after selling its remaining stake in Micron Technology Inc. Gains related to the sale were expected to raise the Dallas-based chipmaker's fourth-quarter net income by $125 million. Micron declined 29 cents to end the day at $12.76.
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