Dow Retreats From Record High

Stocks fell slightly short in a late bid to extend November’s surprisingly resilient rally, having recovered from a sudden wave of profit-taking that cut short a morning rally Tuesday.

The Dow Jones industrial average, which seesawed from an early 42-point gain to a 50-point loss before steadying near midday, briefly pulled into positive territory amid some late bargain-hunting, but then trailed lower to close at 6,528.41, down 19.38.

Most broad stock measures ended slightly lower after rebounding from their lows, although the technology-laden Nasdaq market managed to pull higher in the last hour, padding Monday’s record high.

“Investors are very nervous, and that’s reflected in the action of the market,” said Peter Anderson, chief investment officer at the IDS Advisory Group in Minneapolis. “They’re afraid not to be in it, but scared to be in it. One hour they’re more afraid than greedy, the next hour they’re more greedy than afraid.”

Declining issues outnumbered advancers by nearly a 6-to-5 margin on the New York Stock Exchange, where volume was again unusually heavy for a holiday week, totaling 527.37 million shares as of 4 p.m. That compared with 475.28 million in Monday’s dealings.

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

NYSE

Walt Disney, up 2-1/2 at 76.

The company’s profits rose 27 percent for its fourth quarter ended Sept. 30, helped by strong earnings from the ABC television, movie and theme-park businesses.

IBM, up 3/8 at 158.

The world’s biggest computer company’s board authorized the buyback of up to $3.5 billion of its common stock.

Texas Instruments, up 4-3/8 at 60-7/8.

The Dallas-based chipmaker reached a 10-year licensing deal with Korea’s Samsung Electronics, ending a year-long squabble over royalty payments.

Deere & Co., down 2-5/8 at 44.

The heavy equipment maker reported a 15 percent increase in profits for its fourth quarter ended Oct. 31, but the improvement to $173.9 million, or 68 cents per share, was smaller than expected.

NASDAQ

Mecon, down 8-1/8 at 6-7/8.

The health care information company expects to report disappointing earnings for its third quarter ending Dec. 31 due to lower productivity during its reorganization.

House of Fabrics, up 1-3/8 at 3-7/8.

The craft products retailer reported a third-quarter profit, its first since emerging from bankruptcy.