US stocks mixed amid profit taking

A late-day selloff left stocks mixed today as investors put aside their enthusiasm over acquisitions and evidence of a moderating economy and cashed in profits from an early advance.

Reports showing an unexpected slowdown in manufacturing growth and an upswing in construction spending fed optimism about the economy’s health and a possible end to the Federal Reserve’s interest rate hikes.

The early buying sent the Dow Jones industrials up 138 points and had the Standard & Poor’s 500 and Nasdaq composite indexes near multi-year highs.

The market’s momentum waned late in the day as nervous investors chose to play it safe and take money out of stocks and bonds.

The mixed economic news nonetheless showed that the economy, while tapering, continues to move forward at a healthy pace, said Jay Suskind, head trader at Ryan, Beck & Co.

And that bodes well for investors anxious about indications from the Fed last week that it will keep lifting rates to restrain economic growth and inflation.

“I think it’s the same old story: The economy certainly surprises us by how resilient it is,” Suskind said, adding that a strong beginning to the quarter and acquisition news were also driving the market’s advance.

Today’s acquisitions were led by General Motors Corp.’s deal to sell a majority stake in its auto financing unit for 14 billion dollars. Lucent Technologies Inc. also agreed to be acquired by Alcatel SA for 13.4 billion dollars in stock.

The Dow gained 35.62, or 0.32%, to 11,144.94. The Dow finished the first quarter Friday with a 3.66% advance.

Broader stock indicators were also higher. The S&P 500 rose 2.98, or 0.23%, to 1,297.81, while the Nasdaq dropped 3.05, or 0.13%, to 2,336.74.