NEW YORK - Stocks turned lower in late trading today as optimism about second-quarter earnings gave way to selling by investors eager to reap gains from last week's stunning gains. Dow off 4.12
Associated PressThe Dow Jones industrial average slipped 4.12 to close at 11,135.12. Earlier in the session, the blue-chip index had risen 97.52 points above Friday's record close of 11,139.24. Broader stock indicators were also lower after a late selloff.
The Standard & Poor's 500 index fell 3.10 to 1,388.12, and the Nasdaq composite index fell 4.24 to 2,736.78.
Decliners beat advancers by an 10-to-9 margin on the New York Stock Exchange, with 1,588 down, 1,439 down and 497 unchanged. NYSE volume totaled 724.02 million shares vs. 589.12 million Friday. The NYSE composite index fell 0.35 to 654.77. But the American Stock Exchange composite index rose 2.47 to 804.89 and the The Russell 2000 index of smaller companies rose 0.04 to 456.55.
Stocks faltered as weakness in the bond market and a desire to lock in profits outweighed the strong outlook for second-quarter profits. Traders wanted to cash in on gains that included a 586.68-point advance in the Dow.
The price of the 30-year Treasury bond slipped, pushing the yield to 6.04 percent, up from 6.0 percent late Friday. Traders consider bond yields above 6.0 percent a threat to stocks, partly because at that level, they might present an alternative to volatile stocks.
Christine Callies, chief investment strategist at Credit Suisse First Boston, said the higher interest rates implemented by the Federal Reserve last Wednesday set the stage for a market drop.