Newspaper article THE JOURNAL RECORD

Market Weakens, Breaking Streak of Record Increases

Newspaper article THE JOURNAL RECORD

Market Weakens, Breaking Streak of Record Increases

Article excerpt

NEW YORK (AP) - Stock prices weakened Tuesday, breaking a series of record gains in what many Wall Street analysts called an overdue respite caused by profit takers.

""A day like this is not only inevitable, it's welcome frankly,'' said Larry Wachtel of Prudential Bache Securities, a New York investment firm. ""The market had simply gotten into a feeding frenzy.''

The Dow Jones average of 30 industrials, which has risen more than 140 points in a little over a month, retreated to 1,544.50, off 8.60 from its record close Monday. The Dow had set records in fiveof the past six sessions.

Decliners outpaced gainers by about 5-3 on the New York Stock Exchange, where volume totaled 155.23 million shares, down from 176.03 million traded in the previous session.

The Big Board's composite index, which measures a broader range of issues than the Dow, declined 0.73 to 121.17.

""This breath is not threatening,'' Wachtel said. ""It's simply a matter here of tired blood. The market has been moving up dramatically, and from time to time it pauses. I would say it's a normal phenomenon.''

Richard Schmidt of the Hartford-based brokerage Advest Inc., also linked the market's short-term behavior to profit-taking and said he expected demand for stocks to remain strong through the end ofthe year, partly because the number of potential investors has risen rapidly.

""This market today is a market composed of the whole world,'' he said. ""Back in history we only had to deal with 48 states. The funds available for investment today are many times what they were in the past.''

Gainers among the most active NYSE-traded issues included U.S. Air Group at 34 7/8, up 2 1/8, one of the few airlines that did well. …

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