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NEW YORK -- Investors, more cautious than relieved after a week of somewhat better than expected earnings news, decided to take profits today and sent stocks mostly lower. Dow off 90.69
Associated Press
Blue chips tumbled after Home Depot warned of disappointing quarterly results. Tech stocks advanced, but disappointing revenues from Sun Microsystems helped offset the gains in the Nasdaq composite index.
The Dow Jones industrial average closed down 90.69 at 10,587.59. The Nasdaq, dominated by technology stocks, rose a modest 1.93 to 2,770.42, while the Standard & Poor's 500 index fell 5.42 to 1,342.55. Decliners led advancers by a roughly 4-to-3 margin on the New York Stock Exchange, with 1,585 down, 1,248 up and 456 unchanged. Volume came to 1.40 billion shares, vs. 1.36 billion shares yesterday. The NYSE composite index slipped 4.95 to 646.57; the American Stock Exchange composite index dropped 6.62 to 893.26; and the Russell 2000 index fell 6.54 to 488.09.
Analysts downplayed the declines, noting they occurred at the end of a healthy week for many stocks, particularly in the tech sector. The Nasdaq is up 12 percent so far year.
"The market is somewhat overbought now," said Charles Pradilla, chief investment strategist at SG Cowen Securities. "The market is ready for some pullback, some consolidation and profit-taking. We're not out of the woods yet, but I don't see a huge dive from here."
The 10-year Treasury note's price was down 14/32 point, or $4.38 per $1,000 in face value; its yield rose to 5.17 percent from 5.10 percent late yesterday. The 30-year bonds were down 1 7/32 point and yielded 5.55 percent, up from 5.47 percent yesterday.
In heavy trading, Microsoft Corp. led the tech sector, advancing $5.50 to $61 on an earnings report that met expectations. The stock, which is also a Dow component, has risen 41 percent since the beginning of the year.