Newspaper article THE JOURNAL RECORD

Dow Industrials Suffer Little from Profit-Takers

Newspaper article THE JOURNAL RECORD

Dow Industrials Suffer Little from Profit-Takers

Article excerpt

NEW YORK (AP) -- Stocks encountered some profit-taking a day after the Dow industrials broke through 8,000, but the damage was minimal with many investors looking for ways to enter, rather than exit, the market.

The Dow Jones industrial average fell 18.11 to 8,020.77 despite a big gain by Merck, which surged after a strong profit report. The Dow dipped under the 8,000-mark twice during the last hour of trading, but bounced back both times as bargain hunters went to work.

Broad-market indicators also pulled back slightly, snapping a 10- session streak of record highs for the technology-rich Nasdaq composite index. "We were set up to get smacked today," said Alfred E. Goldman, a market analyst at A.G. Edwards & Sons of St. Louis, noting the fretful tone of many media reports on Wednesday's exploits in the stock market. "Classically, you buy them at the wake and you sell them at the wedding. But the bears couldn't get anything going because the sideline money wants in," said Goldman. "It's a very strong statement when a market is as extended as this one is and the sellers still can't get anything going. That shows we still have upside momentum." The profit picture remained bright Thursday with strong second- quarter reports from bellwether names such as Merck, Sears and McDonald's. But the big earnings event of the day came after the closing bell, when Microsoft reported on its results for the April- June quarter. The software giant's profit jumped nearly 90 percent for the period, but the figures only barely beat Wall Street's expectations. Microsoft's shares, which surged nearly 10 points in Wednesday's rally, had risen 1 to 1497/16 ahead of the report. Declining issues outnumbered advancers by a 9-to-8 margin on the New York Stock Exchange, where volume was very heavy again, totaling 629. …

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