Profit-Taking Snaps Dow’s February Streak

A robust profit report by Dell Computer lifted the Nasdaq market back toward record levels, but the Dow Jones industrial average’s streak of record highs ended Thursday as the blue-chip sector finally succumbed to a bout of profit-taking.

The Dow fell 75.48 to 8,375.58, snapping a six-session string of closing records. Even with the loss, the biggest since Jan. 21, the Dow has gained about 675 points, or 8.8 percent, during its nearly month-long rally.

“Valuations are stretched. This is not the end of the bull market by any stretch, but you need a pullback,” said Larry Rice, chief investment officer at Josephthal & Co.

“When you get up to record valuations, anything could set (the market) off. It could be Asia, it could be Iraq,” said Rice, referring to the risks posed by a looming military clash with Iraq and a still simmering economic crisis in Asia.

The downturn in the blue-chip sector masked a steady day on the broad market, where decliners outnumbered advancers by only a small margin and a rally among bellwether technology issues boosted the Nasdaq composite index to its highest level since before late October’s sell-off.

Declining issues led advancers by an 11-to-9 ratio on the New York Stock Exchange, and by an even smaller margin on the Nasdaq Stock Market, where the composite index rose 11.28 to 1,727.01, its best finish since Oct. 14 and less than 20 points from Oct. 9’s record close of 1,745.85.

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

NYSE

Computer Sciences, down 5-3/4 at 103-1/2.

The computer services company rejected an unsolicited buyout offer from Computer Associates International, calling the $108 a share bid inadequate and saying it had no plans to negotiate with the software maker.

Medtronic, down 3-3/4 at 52-1/4.

The Minneapolis-based medical-device maker reported a 94 percent plunge in quarterly profits, due largely to the costs of a restructuring plan also announced late Wednesday.

Lucent Technologies, up 2 at 100.

The stock rose for a second day after the communications technology company announced plans to split its stock 2-for-1 and increase its quarterly dividend by 6.7 percent.

NASDAQ

Dell Computer, up 9-9/16 at 122-3/4.

The nation’s largest seller of computers by mail reported a 52 percent improvement in profits for its fourth quarter ended Feb. 1, beating Wall Street forecasts handily.

Electronic Arts, up 4-3/8 at 44-3/16.

The software developer signed a licensing agreement with Nike to release a Tiger Woods golf game for the personal computer and Sony’s PlayStation video game console.