Smaller stocks rose in New York again yesterday, but the Dow industrials and other popular measures ended their winning streaks as investors took some profits before the weekend.
The Dow Jones industrial average fell 80.85 points - or by 1 per cent - to 8,452.29, giving back most of its slim 116-point gain from the past four days.
Most broad-market indicators also succumbed to some profit-taking from Wall Street's big two-week rebound, but the Russell 2000 index of smaller companies rose as investors continued to hunt for bargains in that battered sector.
While sentiment has improved dramatically, investors are growing concerned that the outlook for company profits will need to improve considerably to justify another move higher by the bluechip group.
The Dow had risen nearly 600 points during the preceding seven trading days, posting its first winning streak of that length since June, 1997. The spark behind most of that gain was the Federal Reserve's unexpected decision late last week to cut interest rates again. It was the second rate cut in a month by the central bank. By finishing lower today, the Dow missed out on its first eight-session winning streak since December, 1996.
While still about 900 points, or 9.7 per cent, below the July 17th record of 9,337.97, the Dow does hold a respectable gain of 544 points, or 6.9 per cent, for the year.
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