Profit-Taking Sends Dow Down 21.79

Stock prices pulled back Tuesday as profit-taking knocked the market off its lofty perch.

Weakness in the bond market, reflecting economic uncertainties, gave investors an excuse to sell stocks and collect profits from the recent record-breaking run-up while they reviewed corporate earnings reports and braced for possible disappointments.

The Dow Jones industrial average fell 21.79 points to 4,680.60. Much of the deficit was due to a plunge in shares of International Paper, one of the blue-chip indicator’s components.

Losers outnumbered gainers by about 13 to 10 on the New York Stock Exchange. Trading on the Big Board was active and eased only slightly from a day before. Volume on the NYSE floor amounted to 376.45 million shares as of 4 p.m. Eastern time compared to 409.65 million Monday.

Almost all broad gauges lost ground. Only the American Stock Exchange managed to buck the trend. Its market value index established a record for the fourth straight session by rising 2.88 to 509.05.

Some of the stocks that moved substantially or traded heavily:

NYSE

Amsco, up 2-3/8 to 16-5/8.

The company appointed Richard Gilleland, formerly head of Tyco International’s Kendall International unit, president and chief executive officer.

International Paper, down 4-1/8 to 86-5/8.

Investors trimmed holdings of paper stocks amid reports that the industry’s prospective growth is already accounted for in stock prices. International Paper’s stock price declined despite news of unexpectedly strong results for the company.

Advanced Micro Devices, up 1/4 to 34-3/8 in heavy NYSE volume of more than 5.5 million shares

The stock’s investment rating was raised to “buy” from “hold” by the brokerage S.G. Warburg. Late Monday, the company posted results that failed to meet analysts’ earnings estimates but Warburg said the bad news for the company is in the past.

NASDAQ

Landmark Bancorp, up 4-3/8 to 16-3/4

The company received a takeover offer from California State Bank for $36.8 million or $19.75 a share.

Immune Response, up 29-32 to 4 15-16.

Investors bid up the stock following news that the Food and Drug Administration has cleared the way for phase II trials of a new rheumatoid arthritis therapy.