Dow Touches New Record, Retreats
Blue-chip stocks slipped from record levels, but broader market measures set new highs for a third straight day amid more signs of a surprisingly resilient economy.
The Dow Jones industrial average briefly edged into record territory during the afternoon, but pulled back to finish down 16.19 at 8,659.56. The barometer of 30 blue-chip companies had closed at record highs the prior two sessions, gaining 108 points.
Other stock indicators padded Wednesday’s record highs, but the gains were fairly marginal.
“The momentum is beginning to slow in the stock market,” said Sung Won Sohn, chief economist at Norwest Corp. in Minneapolis. With leading market indexes suddenly sporting gains of 10 percent and better for the new year, “People are beginning to say, ‘Are we exceeding our speed limit? Are we going too fast?”’ Advancing issues outnumbered decliners by a narrow margin on the New York Stock Exchange, where volume totaled 594.94 million shares - brisk, but down from Wednesday’s hefty tally of 655.26 million.
Some of the stocks that moved substantially or traded heavily Thursday:
NYSE
Dole Food, down 6-7/8 at 50-1/4.
The food processor warned late Wednesday that its first-quarter earnings will be below expectations due to weak banana prices in North America.
General Motors, down 1-1/8 at 72.
CNBC reported that Goldman Sachs downgraded GM, which on Wednesday told analysts it plans to cut $4 billion in costs this year, up from $3.5 billion in 1997.
PepsiCo, up 2-3/4 at 43.
Merrill Lynch upgraded Pepsico’s shares to “buy” from “neutral,” CNBC reported. The stock also was upgraded earlier in the week by Credit Suisse First Boston and Schroder & Co., Dow Jones News Service reported.
Columbia/HCA, up 1-15/16 at 31-7/16.
Salomon Smith Barney upgraded the hospital company’s shares to “outperform” from “underperform,” Dow Jones News Service reported.
NASDAQ
WasteMasters, up 9/32 at 2-5/32.
The Dallas-based provider of environmental services agreed to acquire Wood Management of New Jersey for $2.1 million in restricted common stock. Wood Management processes and recycles tree stumps and wood refuse.
Atec Group, up 3/4 at 4-1/2.
The computer dealer hired First Colonial Securities Group as an adviser on potential mergers and acquisitions.