Dow Ends Record-Setting Winning Streak

The Dow Jones industrial average fell just shy of its ninth straight record high as an afternoon rebound faltered Monday in uninspired trading.

The Dow fell 1.12 to 6,346.91, also ending a string of 10 straight winning sessions that had produced a gain of about 325 points, or 5.4 percent.

Broader measures also finished lower as investors, expecting few market surprises from this week’s light schedule of events, secured some profits on a stunning post-election rally.

“How long can you celebrate the election? You need some positive events to drive the market,” said Robert Froehlich, chief investment strategist at Van Kampen American Capital in Oakbrook Terrace, Ill., noting that no major earnings or economic news is expected in the next few days. The market’s early afternoon turnaround could be traced to another stellar day for IBM, which surged for the second straight session on positive comments by securities analysts. IBM spent the morning lower, but then jumped higher as word of an encouraging assessment from Morgan Stanley spread. It rose as high as 150, then settled to close at 146-3/4, up 1-3/4 on the day.

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

NYSE

Tyco Toys, up 4-1/2 at 11-1/2.

Mattel plans to acquire Tyco Toys for about $755 million, or $12.50 a share, in stock. The companies said the merger will help reduce costs by combining their manufacturing and international distribution networks. Tyco Toys lost $27.2 million, or 87 cents a share, last year.

McDonnell Douglas, down 4-1/4 at 52-1/2.

Lockheed Martin, up 1-7/8 at 95-5/8.

Boeing, up 1-1/2 at 93-1/4.

Lockheed and Boeing will compete for a $219 billion fighter plane contract that likely will determine the U.S. leader in defense contracting well into the next century. The Pentagon narrowed the competition for the contract Saturday, cutting out McDonnell Douglas, whose shares were subsequently downgraded by three brokerages.

NASDAQ

Cortex Pharmaceuticals, up 2-1/8 at 5.

The company’s drug Ampakine will soon be tested on patients with Alzheimer’s, according to a presentation at Sunday’s meeting of the Society for Neuroscience. The drug was tested on students in their early 20s and on men aged 65 to 70, and the results were “particularly striking” among the older people, according to the report. Cortex is based in Irvine, Calif.

Donnkenny, down 2-7/8 at 4-3/16.

The apparel maker reported lower-than-expected income for the third quarter and cautioned that its results for the full fiscal year would be significantly below forecasts. Donnkenny said late Friday it earned $4.6 million, or 33 cents a share, on sales of $86.6 million for the quarter.