Dow Jones recoups its early losses

COMPUTER-RELATED shares rose after an upbeat forecast by chipmaker Intel, but US stocks were mostly lower today as rising interest rates spurred some profit-taking on a record-setting two-day advance. The Dow Jones industrial average dropped just 0.37 to close at 5,888.83, recovering from a 40-point slide that some investors used as a buying opportunity. The Dow had surged 117 points higher in the previous two sessions, reaching new heights for the first time since spring.

Broader measures were mostly negative, with rising interest rates in the bond market providing an excuse to secure some profits.

Bonds fell in the morning after a report that a majority of Federal Reserve officials want an increase in the central bank's lending rates to slow the economy and keep inflation under control. That dampened some of the optimism on Wall Street that recent signs of moderating economic growth would make a Fed rate increase unnecessary.