Dow Slips As Investors Take Profits

Stocks edged mostly higher near the close Tuesday, holding steady against rising interest rates in the bond market and some profit-taking on a two-day rally in blue-chip shares.

The Dow Jones industrial average fell 6.66 to 5,727.18, with investors securing some profits from a combined 125-point jump on Friday and Monday.

Broader measures turned mostly higher by the close, but the market’s moves were restrained by growing caution before some key readings on inflation due later this week.

“The bulk of the market is stepping back and saying, ‘maybe I’ll take a little money off the table and see what’s going to happen with the inflation numbers,”’ said Robert Froehlich, chief investment strategist at Van Kampen American Capital in Oakbrook Terrace, Ill.

Advancing issues outnumbered decliners by a slim margin on the New York Stock Exchange, where volume totaled 371.68 million shares as of 4 p.m., up considerably from Monday’s listless pace, which may have exaggerated that session’s advance.

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

NYSE

ITT, down 7-3/4 at 48-1/4.

The New York-based company expects third-quarter earnings to fall far short of expectations due to baccarat losses at its Caesars Palace casino in Las Vegas.

Ford Motor, down 1/4 at 31-5/8.

General Motors, down 3/8 at 47-1/8.

Chrysler, down 3/8 at 28-3/8.

The stocks of the three major U.S. automakers fell, led by Ford, which said it expected third-quarter earnings to fall short of estimates because of disappointing results from its Brazilian operations. GM, meanwhile, said fourth-quarter production will fall short of expectations because of a high number of model changeovers.

Lucent Technologies, up 7/8 at 39-3/4.

The former communications equipment arm of AT&T received a seven-year, $1 billion contract to provide telecommunications products and services to ICG Communications of Denver.

NASDAQ

GreenStone Industries, up 13/16 at 4-3/4.

Portland-based Louisiana-Pacific agreed to acquire GreenStone for $5.25 a share, or about $36 million. GreenStone, based in Bethesda, Md., makes insulation and specialty fibers from recycled paper.

Praegitzer Industries, down 3-1/2 at 9-13/16.

The Dallas, Ore.-based, circuit board designer expects first-quarter earnings to be below analysts’ expectations due to changes in product mix and costs to integrate a recent acquisition.