Dow Slips As Investors Take Profits

The Dow Jones industrial average made another short-lived move above 6,000 on Tuesday as stocks, particularly technology shares, fell on some profit-taking in advance of the quarterly flood of earnings reports.

The Dow Jones industrial average dipped 13.04 to close at 5,966.77, having quickly surrendered from an early 30-point gain that had lifted the blue-chip average just above 6,010. On Monday, the Dow pierced the 6,000-mark for the first time, but pulled back within minutes.

Broader market measures slipped from record levels as interest rates rose slightly in bond trading, providing stock investors with an excuse to secure more profits on the market’s month-long push into record territory.

The bond market’s weakness after a series of strong sessions “is not that big a deal, but it was ideal for a stock market that has done extremely well and was looking for an excuse to sell,” said Rao Chalasani, chief investment strategist at Everen Securities in Chicago.

Declining issues outnumbered advancers by a 4-to-3 margin on the New York Stock Exchange, where volume totaled 434.66 million shares as of 4 p.m., up from Monday’s pace.

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

NYSE

American Brands, up 3-5/8 at 48-1/4.

The consumer products company plans to spin off its Britain-based cigarette operations and change its name to Fortune Brands, cutting its ties to the tobacco business.

Wal-Mart Stores, up 3/8 at 27-1/8.

The Bentonville, Ark.-based retailer’s September sales rose to $9.59 billion, up 13.2 percent from a year ago. Sales in stores open at least a year rose 5.6 percent. Wal-Mart also said it plans to open about 50 discount stores, 100 supercenters and 5 to 10 Sam’s Clubs in the United States in the year beginning Feb. 1.

Motorola, down 1 at 48-3/4.

As expected, Motorola reported a 58 percent drop in third-quarter earnings, cautioning that troubles in its semiconductor and cellular equipment businesses might continue. The profit, reported late Monday, totaled $206 million, or 34 cents a share.

NASDAQ

Biogen, up 2-1/4 at 76-1/4.

A district court dismissed a lawsuit accusing the Food and Drug Administration of improperly approving the Cambridge, Mass.-based biotech company’s multiple sclerosis drug.

Starbucks, down 1-23/32 at 36-1/8.

Hambrecht & Quist downgraded Starbucks Corp. to hold from buy based on the stock’s price, the Dow Jones News Service reported.