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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Dow Dips As Financial Markets Rest

Associated Press

Stock buyers took a break Tuesday, stalling the market’s advance toward record levels.

The Dow Jones industrial average eased slightly to finish at 3,937.39, off 0.34, after having marched steadily closer to its all-time high of 3,978.36 over the five previous sessions.

Late buying propped up the market, allowing the Dow industrials and broader indicators to finish with only minor losses.

Gainers led losers by about 9 to 7 on the New York Stock Exchange where trading was active. Volume on the Big Board’s floor amounted to 314.61 million shares as of 4 p.m. Eastern time, down from 325.61 million Monday.

Analysts said a string of winning sessions on Wall Street had elevated stock prices to levels that provoked limited profit-taking. It was encouraging, analysts said, that the market didn’t encounter significant selling.

“The market rested,” said Oded Levy, head of the trading desk at Genesis Merchant Group.”I think it is very healthy. All the worries about interest rates are over. I think the next move for the market is up.”

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

NYSE

Time Warner, up 1 1/4 to 39 in heavy NYSE volume of more than 3.1 million shares

The media and entertainment company announced it is buying cable systems operator Cablevision Industries for stock and assumed debt totaling about $2.6 billion, in a major expansion of its cable television operations. Cablevision Industries is privately held.

National Semiconductor, down 1 1/8 to 17 1/4 in heavy NYSE volume of more than 3.5 million shares

The investment rating on the chip maker’s stock was reduced to “neutral” from “buy” by PaineWebber.

BankAmerica, up 3/8 to 46 3/4 in heavy NYSE volume of more than 2.7 million shares

The bank holding company boosted its quarterly dividend to 46 cents from 40 cents and approved the repurchase of $1.9 billion of common shares.

NASDAQ

Komag, down 3 to 23 7/8 in heavy Nasdaq volume of more than 3.6 million shares

The company received three new lines of credit totaling $80 million. The fourth-quarter income of 60 cents a share compared to a loss of $1.37 a share a year earlier.

AMEX

Assisted Living Concepts, up 1 to 9 in heavy American volume of more than 170,000 shares

Trading in the stock included large blocks.