Profit-Taking Stalls Dow’s Surge
Bellwether technology shares lifted the Nasdaq market to a third straight record Wednesday, but blue-chip issues slumped again as the latest economic news spurred some profit-taking on November’s rally.
The Dow Jones industrial average fell 29.07 to 6,499.34, giving the red-hot blue-chip barometer its first two-day losing streak in more than a month. Even with the two-day drop of nearly 50 points, the Dow is up about 470 points, or 7.8 percent, in November.
Broad-market measures finished mixed in the sluggish pre-Thanksgiving session, with the technology-rich Nasdaq composite index and American Stock Exchange market value index both rising.
Advancing issues outnumbered decliners by a 7-to-6 margin on the New York Stock Exchange, where volume totaled 377.65 million shares as of 4 p.m., down sharply from Tuesday’s heavy pace of 533.46 million.
Some of the stocks that moved substantially or traded heavily Wednesday: NYSE
Owen Healthcare, up 8-3/4 at 25-1/2.
Cardinal Health of Dublin, Ohio, agreed to acquire Houston-based Owen for stock in a deal valued at $496 million, or $27.25 a share.
L.A. Gear, up 1/8 at 2-3/8.
The struggling sneaker maker plans to cut 170 jobs, or 55 percent of its U.S. work force, early next year. The company plans to consolidate operations at its Santa Monica, Calif., headquarters and its Ontario, Calif., distribution center.
America Online, up 2-1/4 at 34-7/8.
Cowen & Co. upgraded the on-line service to buy from neutral, the Dow Jones News Service reported. In a research report, Cowen said AOL, based in Dulles, Va., has “successfully embraced the Internet through new pricing, features, content and access.”
NASDAQ
Vacation Break USA, up 6 at 16-3/4.
The developer of vacation properties in Florida and the Bahamas reached a definitive agreement to merge with the Berkley Group, a developer of timeshare resorts in North America.
Biacore AB, 17-3/8 from initial offering at 16.
The analytical instruments business, a former unit of Swedish-U.S. pharmaceutical giant Pharmacia & Upjohn, sold 5 million American depositary shares for $80 million, or $16 each, in an initial public offering.
Forrester Research, 22 from initial offering at 16.
The technology company raised $32 million in an initial public sale of stock, selling 2 million shares for $16 each, within the expected range of $15 to $17 each.