Dow drops 39 points

US stocks ended a stellar third quarter with a moderate decline today, with the Dow Jones industrial average pulling back further from record-high levels.

The day’s economic news was gloomy and money managers made few bold moves as the quarter ended.

“This is possibly a short-term top,” Ken Tower, chief market strategist for Schwab’s CyberTrader, said of the Dow’s briefly surpassing its closing record of 11,722.98 on Thursday.

“The Dow has been flirting with an all-time high; the market may be due for a little rest as we enter October.”

Stocks dipped after St Louis Federal Reserve President William Poole said the Fed would continue to watch economic data as it sets interest rate policy. His comments were seen as leaving the door open to additional interest rate hikes if inflation necessitates them; traders had been hoping the hikes were over.

The Dow fell 39.38, or 0.34%, to 11,679.07. The blue chip index briefly crossed its closing high on Thursday, then slipped back. It has yet to surpass its all-time trading high of 11,750.28; both highs were reached on January 14, 2000.

Broader stock indicators were lower. The Standard & Poor’s 500 index fell 3.30, or 0.25 to 1,335.85, and the Nasdaq composite index fell 11.59, or 0.51%, to 2,258.43. The S&P 500 remains near a 5-year high.