Dow Pauses, Inches Up .92 as Broader Market Drops

Wall Street took a breather today, with the Dow Jones industrial average inching its way up to a new closing high but with prices of most stocks ending lower.

The Dow Jones average, which reflects the performance of 30 blue chip stocks, rose 0.92 to 2,822.45, just eclipsing the record high of 2,821.53 set on Monday. Today’s advance brought to 177.40 points the surge in Wall Street’s best-known barometer since April 27.

The broader market remained in negative territory today.

Declining issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange, with 641 up, 847 down and 514 unchanged.

Big Board volume totaled 165.73 million shares, down sharply from 225.41 million in the previous session.

The NYSE’s composite index fell 0.34 to 193.31..

At the American Stock Exchange, the market value index slipped 0.78 to 353.56.

“We’re resting right now,” said Robert O’Toole, manager of over-the-counter trading at Shearson Lehman Hutton Inc. in New York. “People are saying, ‘Hey this is nice, let’s sell some stock.’ ”

Brokers said they believe that the respite is temporary and that the market will turn higher again on the strength of optimism over lower interest rates, which would make stocks a more attractive investment.

The stock market’s rally in the last two weeks has been attributed to evidence that inflation is easing, which has sent interest rates plunging. The market also has been bolstered by the perception that the Bush Administration and Congress are willing to negotiate to reduce the nation’s budget deficit.

Bond prices pulled back in early trading today, breaking the powerful advance of the past three sessions.

The Treasury’s benchmark 30-year bond was down 7/16 point, or $4.40 per $1,000 face amount, at midday after rising more than 2 1/2 points or $25 per $1,000 in face value over the last three sessions.

Its yield, which falls when prices rise, rose to 8.61% from 8.57% late Monday.

Analysts said the pullback may reflect some profit-taking on the market’s recent strong advance as well as worries about an impending report on consumer prices in April.

The Shearson Lehman Hutton daily Treasury bond index, which measures price movements on outstanding Treasury issues with maturities of a year or longer, was off 2.24 at 1,149.07.