US investors cash in for quick gains

Wall Street mostly retrenched today as investors couldn’t resist a chance to cash in quick gains from a two-day rally.

But the Dow Jones industrials easily posted their seventh week of gains – the longest streak in more than four years.

Analysts said a pull-back was somewhat expected after a two-day surge pushed stocks to their highest level in months. Lighter trading in advance of the Thanksgiving holiday also contributed to price swings.

“We’re having a bit of pause after yesterday’s big rally,” said Ed Peters, chief investment officer at PanAgora Asset Management Inc. “With the advance being so quick, people are reassessing.”

The Dow fell 40.31, or 0.5%, to close at 8,804.84, according to preliminary calculations, to snap a two-day gain of 370 points. On Thursday, blue chips closed at their highest level since August 26, when it stood at 8,919.01.

The broader market finished mixed. The Nasdaq composite index inched up 1.18, or 0.1%, to 1,468.73, after closing Thursday at a level not seen since July. The Standard & Poor’s 500 index declined 3.21, or 0.3%, to 930.55.

For the week, the Dow gained 2.6% to post its seventh winning week, a feat not seen since the period ended March 20, 1998. The Nasdaq climbed 4.1% and the S&P 500 rose 2.3%, their sixth week of gains in seven weeks.

Analysts said investors have been upbeat after Wall Street’s recent rally and are generally looking to buy since the end of the year traditionally has been the strongest time for stocks.

But analysts caution that stocks remain vulnerable to declines due to profit-taking as well as concerns about terrorism and a war with Iraq.

Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was moderate.

The Russell 2000 index, which tracks smaller company stocks, rose 2.32, or 0.6 percent, to 400.00.