Dow Average Falters In Its First Try At 8,000

The Dow Jones industrial average faltered Monday in its first assault on the 8,000 mark as investors used an early advance to secure some profits on the market’s recent gains.

The broad market ended mixed, with big-name technology shares leading the Nasdaq market to its third straight record close.

The Dow fell 37.32 to 7,858.49 after surrendering an early 55-point gain that put the blue-chip barometer above 7,900 for the first time and within 50 points of the 8,000-mark. The Dow, up nearly 22 percent this year, first crossed 7,000 less than five months ago.

Most stock indexes also turned negative after initially pushing further into record territory early Monday, bolstered by another drop in bond-market interest rates.

The pullback quickly enticed some bargain hunters, however, helping the stock market recover some ground over the final hour of trading.

“They’re still buying the dips. Just when it looked like it was going to break, the buyers moved in,” said Richard A. Dickson, a technical analyst at Scott & Stringfellow in Richmond, Va. “The Dow goes down 67 points, things look dicey, and boom, the buyers come back in.”

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

NYSE

Barrick Gold, down 1 11/16 at 20-1/4.

Placer Dome, down 2-1/4 at 14.

Homestake, down 9/16 at 12 7/16.

Newmont Mining, down 2 7/16 at 35 7/16.

Getchell Gold (Amex), down 3-1/8 at 32.

Bema Gold (Amex), down 7/8 at 5-1/8.

Golden Star Resources (Amex), down 1-1/4 at 6 5/16.

Gold mining stocks fell sharply as gold prices plunged to 12-year lows following Thursday’s news that Australia has sold 167 metric tons, or twothirds, of its gold reserves this year.

Roper Industries, up 2 at 55 9/16.

The Bogart, Ga.-based maker of fluid handling products announced a two-for-one stock split. The share payout will be made Aug. 1 to shareholders of record July 25.

NASDAQ

Jones Medical Industries, down 15-1/2 at 27-7/8.

The maker of critical-care drugs and nutritional supplements expects to report disappointing second-quarter results. Jones Medical warned late Thursday that its second-quarter sales were hurt by aggressive wholesale buying of some products in anticipation of an April 1 price hike.

Cairn Energy USA, down 1-5/8 at 11 13/16.

Meridian Resource agreed to acquire Cairn, another oil and gas concern, for about $234 million.

Terrace Holdings, up 7/8 at 2-3/8.

The maker of frozen dessert products agreed to acquire A-One-A Wholesale Produce. No terms were disclosed.