Dow Retreats From Record High

Stocks pulled back from their peaks Tuesday after a sudden afternoon sell-off in the bond market prompted investors to collect profits.

The retreat on Wall Street snapped a three-session string of record-setting advances in the Dow Jones industrial average, which temporarily traded above 4,100 before abruptly reversing course in late action. It finished at 4,072.61, or 11.07 points below where it started the day.

Declining issues outnumbered advancers by about 11 to 9 on the Big Board where the trading pace picked up from Monday. Volume on the Big Board’s floor came to 367.10 million shares as of 4 p.m. Eastern time, up from 301.72 million in the previous session.

The stock market tracked the bond market throughout the day. Modest bond buying that materialized in midmorning, which coincided with a recovery in the dollar from a record low against the Japanese yen, supported stocks for much of the session. But the support vanished in the afternoon when bonds reacted negatively to an unexpectedly strong retail sales reading.

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

NYSE

Kmart, up 1 to 13.

Investors welcomed news that Joseph Antonini resigned as chief executive officer and president of the nation’s third-largest retailer. Antonini already had relinquished the chairman’s title two months ago and his departure wasn’t surprising.

Unisys, down 1/2 to 9 1/4.

Loral, up 1 to 43 7/8.

Loral is buying computer maker Unisys’ defense and aerospace operations for more than $800 million, beating out rival bidders Raytheon and General Motors’ Hughes Aircraft Co. unit.

Chrysler, down 1 1/4 to 38 5/8.

Stocks of the Big Three automakers were active a day after Consumer Reports magazine issued a ranking of the most reliable used cars that gave low marks to vehicles made by U.S. manufacturers. Chrysler’s models fared the worst of the U.S. Big Three.

NASDAQ

Indigo N.V., down 1 1/4 to 35.

The company said heavy trading in its stock was related to its employee stock-option exercise program.

AMEX

Colonial Data, up 1 5/8 to 15 3/4.

The stock recovered after slumping Monday on news that Texas Instruments would unveil calleridentification equipment that will compete with Colonial Data’s system.