NEW YORK, JULY 20 -- Prices fell back from record high levels on Wall Street today as traders cast a wary eye toward upcoming economic news and decided to take their profits.
The Dow Jones industrial average, which closed above 2500 for the first time on Friday, dropped 22.32 to 2487.72.
Declining issues outpaced advancers by a margin of about 2-to-1 on the New York Stock Exchange.
Big Board volume totaled 168.14 million shares, compared with 209.98 million in the previous session.
The market's retreat from the 2500 level came as no surprise to analysts. "It was not a very convincing performance," Hugh Johnson, a senior vice president with First Albany Corp., said of Friday's record-setting session. "It didn't have the kind of breadth or momentum that makes professional investors comfortable."
With the market's uncertain footing, investors "want to cash in a few chips," Johnson said.
In taking their profits, traders were influenced by a drop in the dollar and Treasury bond prices, analysts said.
They also said many investors were treading lightly as they waited for the release this week of economic statistics, including consumer price and gross national product figures, and the testimony before Congress of outgoing Federal Reserve Board Chairman Paul A. Volcker and his designated successor, Alan Greenspan.
Jack Solomon, an analyst with Bear, Stearns & Co., said many traders also were awaiting second-quarter earnings reports from individual companies.
Favorable earnings figures have fueled market rallies in recent days, but Solomon questioned what forces will keep driving the market after earnings reports are released.
Among companies issuing second-quarter reports today were Dow Chemical and Polaroid. Dow stock closed up 1 5/8 at 87 3/4, while Polaroid, whose earnings were below the predictions of some analysts, fell 2 1/4 to 32 1/4.
The most active issue on the NYSE was Pan Am, which rose 1/8 to 5 1/8. Resorts International Inc. sold a 7.5 million-share block in Pan Am. Neither Resorts nor Pan Am would comment on the possible buyer.
Among the big losers were IBM, which tumbled 2 3/8 to 164 5/8, Procter & Gamble, which slipped 2 3/8 to 91 7/8, Ford Motor, which dropped 1 1/2 to 106 1/2, and Teledyne, which slipped 1 5/8 to 360 1/8.
Gainers included Mobil, which rose 1 1/2 to 54 3/4, and Textron, which picked up 1 5/8 to close at 38 1/8.
Texaco fell 1/8 to 45 after Pennzoil proposed a reorganization plan for Texaco that would allow Texaco to pay it $4.1 billion of the more than $10 billion judgment Pennzoil won in a lawsuit.
Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 198.70 million shares.
The NYSE's composite index fell 1.59 to 175.08.
Standard & Poor's index of 400 industrials fell 3.51 to 364.82, and S&P's 500-stock composite index was down 3.20 to 311.39.
At the American Stock Exchange, the market value index fell 1.49 to 351.99. The Nasdaq composite index for the over-the-counter market closed at 431.51, down 2.57