Dow Dips; Market Takes Breather

The stock market meandered to a mixed finish Tuesday as blue-chip issues paused after a series of record-setting sessions.

Technology stocks, however, maintained their upward momentum, enabling the Nasdaq Stock Market to come out ahead for the day.

The Dow Jones industrial average never strayed far from its starting point and ended slightly below Monday’s close, which had been the first finish above 4,300. It dipped 3.81 to 4,300.17.

Advancing Big Board stocks outnumbered declines by fewer than 100 issues and a closing tally showed 1,160 up, 1,074 down and 745 unchanged.

Volume amounted to 351.78 million shares as of 4 p.m. Eastern time on the NYSE floor. On Monday, 325.77 million shares changed hands on the NYSE.

Market analysts were impressed that the market held up as well as it did given Wall Street’s extended run that has brought the Dow industrials to repeated records. Some forecasters have been expecting stocks to retreat in a big way as investors cash in profits.

“I would not be surprised to see the market down sharply any day,” said Ricky Harrington, senior vice president and technical analyst at Interstate-Johnson Lane.

Some of the stocks that moved substantially or traded heavily Tuesday:

NYSE

Compaq Computer, up 1 to 38 1/2.

Selected technology stocks have been leading the market’s advance. The Wall Street Journal’s influential Heard on the Street column said some market professionals favor personal computer issues, especially Compaq.

Kmart, down 1/2 to 14 7/8.

The retailer, which is attempting a turnaround, cut its quarterly dividend to 12 cents a share from 24 cents and issued a gloomy preview of its first-quarter results.

International Business Machines, up 1/8 at 93 5/8.

Investors focused on the stock as the company held its annual meeting at which shareholders voiced dismay over IBM’s decision to hold its quarterly dividend at 25 cents a share.

NASDAQ

IHOP, down 1 3/8 to 23.

Stock of the restaurant chain fell for a second straight session after its investment rating was reduced.

AMEX

Amdahl, down 2 3/8 to 10 1/2.

The stock fell even though the company reported higher first-quarter earnings of $20.6 million, or 17 cents a share, up from $7.1 million, or 6 cents a share, a year earlier.