NEW YORK >> Doubtful that the stock market's latest surge can be sustained indefinitely, investors secured profits for the second straight day today, leaving prices moderately lower. Investors give thanks, take
profits from rallyBy Amy Baldwin
Associated Press"It is a bit of recognition that the market may have moved too, too fast," said Alan Ackerman, executive vice president of Fahnestock & Co.
After weeks of swooping up stocks on their increasing belief the economy will turn around in 2002, investors locked in some gains ahead of the Thanksgiving holiday.
The Dow Jones industrial average fell 66.70 at 9,834.68. Profit taking brought the Dow 75 points lower yesterday, but the blue chips had climbed 368 points in the previous six sessions. The Dow is 19.4 percent above its 2001 low of 8,235.81 on Sept. 21, which followed a 1.369-point plunge the first week of trading following the Sept. 11 terrorist attacks.
"It's not surprising to see some profit taking under way. The market has literally run a mile," Ackerman said.
The Nasdaq composite index pulled back 5.46 to 1,875.05 and the Standard & Poor's 500 index declined 5.63 to 1,137.03. The broader indicators also have risen substantially from the lows they incurred after the attacks. The Nasdaq is up 31.7 percent; the S&P 500, up 17.7 percent.
Decliners outnumbered advancers 3 to 2 on the New York Stock Exchange, with 1,818 down, 1,262 up and 244 unchanged. Volume, lighter than normal as many traders took off ahead of the holiday, was 1.01 billion shares vs. 1.31 billion shares traded yesterday. The NYSE composite index fell 2.76 to 579.56, the American Stock Exchange composite index rose 2.30 to 813.33 and the Russell 2000 index fell 1.59 to 452.31. The Treasury's 2-year note fell 7/32 to 99 - 13/32; its yield rose 13 basis points to 3.07 percent. The 10-year note fell 1 - 5/32 to 99 - 29/32; its yield gained 15 basis points to 5.01 percent. The 30-year bond lost 17/32 to 100 - 9/32; its yield rose 4 basis points to 5.35 percent.
A positive report on consumers' mood failed to motivate investors to buy. The University of Michigan consumer sentiment index rose to 83.9 percent in November, up from 82.7 percent in October.
Meanwhile, Eli Lilly & Co. said it won U.S. Food and Drug Administration approval of its Xigris drug for severe sepsis, the first treatment approved for the often fatal overreaction to infection. Analysts estimate annual sales for Xigris, a genetically engineered protein, will top $1 billion within a few years.