US stocks end mixed

Wall Street’s rally stalled today as investors cashed in some of their profits from two days of big gains. But the technology sector still managed to advance for a third day, an achievement not seen since early April.

Analysts said the market was tentative following mixed economic news a rise in consumer prices and an increase in industrial production.

That made investors cautious about sending stocks much higher, particularly after the Dow Jones industrials surged a total of 358 points on Monday and Tuesday.

Today, the Dow closed down 54.46, or 0.5%, at 10,243.68.

The broader market was mixed. The Nasdaq composite index rose 6.51, or 0.4%, to 1,725.56, after a two-day gain of 118.20. The Nasdaq had not seen three consecutive wins since a four-day rally between March 26 and April 1.

The Standard & Poor’s 500 index fell 6.21, or 0.6%, to 1,091.07, after rising 42.29 on Monday and Tuesday.

Many analysts believe the market’s recent selloff climaxed last week when the major indexes closed at levels not seen since early October. In the short run, they expect the indexes to trade within a narrow range.

The ability of enticing prices to move the market was limited today after two days of strong buying prompted some profit taking.

While the tech sector eked out an advance, stocks themselves were mixed. Applied Materials inched up 11 cents to dlrs 26.75 after releasing stronger-than-expected second-quarter earnings late on Tuesday and offering cautious optimism about the future.

But Dow industrial IBM fell 98 cents to dlrs 84.50 as executives prepared to meet analysts to discuss its business outlook.

Hewlett-Packard, also a Dow stock, fell dlrs 1.15 to dlrs 19.35 after releasing earnings results late on Tuesday for its fiscal second quarter. The company met expectations but refused to make projections about future business, saying more details will be disclosed at a securities analysts meeting June 4.

Outside tech, Schering-Plough slid dlrs 3.49 to dlrs 25 on news that the Food and Drug Administration is conducting a criminal investigation into one or more of the company’s products made in Puerto Rico.

Honeywell slipped 9 cents to dlrs 39.25 after announcing it was laying off as many as 900 workers and closing four plants near Minneapolis.

The economic news was mixed. The Labour Department reported that the Consumer Price Index rose by 0.5% in April, the largest increase in almost a year and slightly worse than analysts expected. Consumer prices are closely watched because they are a key indicator of inflation.

On the upside, industrial production at US factories, mines and utilities rose 0.4% in April, the fourth monthly advance, according to the Federal Reserve.

Advancing issues narrowly outnumbered decliners 16 to 15 on the New York Stock Exchange, where volume was moderate.

The Russell 2000 index, which tracks smaller company stocks, rose 1.81, or 0.4%, to 513.53.