Stocks drifted to a mixed finish in the quietest session of the year in New York yesterday as investors worried about interest rates and took profits from a modest rally on Friday. The Dow Jones was up 25.77, or 0.2 per cent, at 10,603.63. Technology stocks fell, the Nasdaq composite index closing down 147.44, or 3.9 per cent, at 3,669.38. Broader stock indicators were mostly lower. According to preliminary calculations, the Standard and Poor's 500 fell 8.36 to 1,424.27, while the Russell 2000 index of smaller companies fell 12.76 to 500.08.

Declining issues outnumbered advancers by an 11-to-7 margin on the New York Stock Exchange, with 1,714 down, 1,251 up and 450 unchanged.

Traders said the most significant action in the market came from investors selling stocks to capture short-term gains from a solid rally on Friday, when the Dow rose 165 points and the Nasdaq rose 96.