Profit-Taking Sets Stage For Dow’s Pullback

A late burst of profit-taking stripped the Dow Jones industrial average of a run above 7,800 Tuesday, while strength in technology stocks lifted the Nasdaq index to another new high.

The Dow fell 11.31 to close at 7,760.78 after being as high as 7,810 earlier in the day. The blue-chip average weakened by the close as investors cashed in on its recent runup, which in the past eight sessions lifted it above 7,400, 7,500, 7,600 and 7,700 for the first time ever.

“We saw some weakness today, but such a small decline in the Dow is really just nothing when the Dow is up over 7,700,” said Barry Berman, head trader at Robert W. Baird & Co. in Milwaukee. “It’s really just investors trading based on what they need at the end of the quarter.”

While the Dow fell, the Nasdaq composite index rose 11.16 to 1,443.11, its third straight record close, propelled by a rally in bellwether technology stocks. The Standard & Poor’s 500 list closed at its eight straight new high, rising 0.53 to 894.43.

Advancing issues slightly outnumbered declines by a narrow margin on the New York Stock Exchange, where volume totaled 542.96 million shares as of 4 p.m., vs. 414.28 million in the previous session.

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

NYSE

Reynolds & Reynolds, down 4-1/8 at 15-5/8.

The Dayton, Ohio-based provider of information-management systems said its earnings for the fiscal third quarter won’t meet Wall Street analysts’ expectations.

Equifax, up 4 at 36-1/8.

Standard & Poor’s Financial Information Services Group announced late Monday that Atlanta-based Equifax will replace PanEnergy Corp. in the S&P 500 Index after the close of trading Wednesday.

Tommy Hilfiger, down 3-1/4 at 40-1/8.

Dow Jones News Service reported that the investment firm Dillon Read downgraded the clothing manufacturer’s stock.

NASDAQ

Cascade Bancorp, up 2 at 34-1/2.

The Bend, Ore.-based company announced a two-for-one stock split for all shareholders of record on July 1, 1997.

Amgen, down 3-9/16 at 58-9/16.

The Thousand Oaks, Calif.-based biotechnology company said it expects a “modest reduction” in the growth rate of its top-selling Epogen product.

Seda Specialty Packaging, up 6-1/2 at 28-1/2.

CCL, a Canadian supplier of manufacturing services and specialty packaging products, will buy packaging maker Seda for $185 million. CCL does not trade in the United States.

Datum, up 4-1/2 at 31-1/4.

The investment firm Hambrecht & Quist upgraded the Anaheim, Calif.-based maker of precision frequency products and timing instruments.