Profit-Taking Erases Most Of Gains

Stocks ended modestly higher Tuesday as late in the session traders sold shares amid concern about upcoming inflation data. That came despite a report showing only moderate wholesale price increases in December.

Analysts said that as the afternoon wore on, and with the Dow Jones industrial average up about 30 points, traders rushed to capture gains ahead of today’s report on consumer prices.

“They are worried they might get hit with a bad number,” said Don Hays, investment strategist at Wheat First Butcher Singer.

In addition, two quarterly earnings reports pulled the market from different directions. Strong numbers from Motorola boosted chip and other technology issues, while asexpected earnings from International Paper depressed some stocks of companies whose fortunes are tied to the economy.

The Dow average rose 5.39 points to 3,866.74.

Advancing issues were just about even with declines on the New York Stock Exchange.

Volume on the floor of the Big Board came to a heavy 351.28 million shares as of 4 p.m., up sharply from 278.72 million Monday.

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

NYSE

Grupo Televisa, down 3 3/8 to 21 3/4.

Mexican shares continued to suffer as the Mexican stock market tumbled.

Motorola, up 2 7/8 to 61 3/4.

The company released an encouraging fourth-quarter earnings report late Monday. The technology giant said net income for the period jumped to 86 cents a diluted share from 58 cents a year earlier. That pulled up other chip stocks and many technology shares. Micron Technology rose 1 3/4 to 44 3/4, while Compaq rose 1 1/2 to 41 1/4.

International Paper, down 1 to 76 3/4.

The company said earnings were $1.23 a share, vs. 81 cents in the same three months last year. That was in line with estimates.

NASDAQ

Netframe Systems, down 1 3/4 to 5 3/8.

The maker of specialized computer systems late Monday forecast fourthquarter revenues below those in the previous three months and said it may report a loss for the period.

AMEX

Exx Inc. class A shares, up 9 to 21 5/8.

The company said fourth-quarter profits and sales will exceed levels in the same year-ago period by 300 percent, citing the toy segment for the increase.