Blue-chip stocks succumbed to a spate of profit-taking and a shake-up at Coca-Cola, but a wide range of technology stocks rose amid optimism about future growth.
The Dow Jones industrial average fell 61.17 to close at 11,225.01.
Broader indicators were mixed, with technology stocks once again driving the Nasdaq composite index higher. The Nasdaq rose 25.38, to 3546.01, and the Standard & Poor's 500-stock index fell 9.97, to 1423.33.
Analysts said a modest decline was to be expected today, with investors collecting their gains from the market's stellar performance last week. On Friday, the S&P 500 and the Nasdaq closed at new records and the Dow gained 247 to finish within 40 points of its closing record of 11,326.04, reached Aug. 25.
"This is a normal bout of profit-taking," said Scott Bleier, chief investment strategist at Prime Charter Ltd. in New York. Analysts said investors' optimism about the broad market remains intact.
The Dow's weakness came primarily from Coca-Cola, which had tumbled 3-21/32, to 64-19/32, as of 5:45 p.m., after the company announced that chairman and chief executive M. Douglas Ivester plans to step down in April.
AT&T, the most widely held stock, gave up an early gain to finish down 3/16 at 56-13/16. Officials confirmed plans to spin off its wireless operations as a separate affiliated company through the creation of a tracking stock. Analysts said investors chose to lock in profits after bidding the stock higher in recent weeks as rumors of the tracking stock swirled through Wall Street.
Also today, AT&T agreed to grant more companies access to its cable TV lines to deliver high-speed Internet services. MindSpring, an Internet service provider named as one of the likely companies, rose 3-11/16, to 36.
Investors also rewarded the latest innovations from computer makers today. IBM was the best performer in the Dow, rising 3-1/32, to 114-29/32, after announcing plans to build a supercomputer to solve the mystery of the structure of proteins.
Red Hat, a leading seller of the Linux operating system, rose 31 1/8, to 232 1/8 after Dell Computer agreed to install Linux on its PowerEdge servers.
Internet directory Yahoo soared 27-13/16, to 280-13/16, on anticipation of its addition to the S&P 500 on Tuesday. Stocks typically rise when they are added to an index, because mutual-fund managers whose portfolios mirror an index must buy them.
Semiconductor stocks also rose, with Motorola gaining 6-41/64, to 130-41/64, and Texas Instruments gaining 5-15/16, to 107-5/16.
A measure of the enthusiasm that sparked Friday's rally lingered on Wall Street today. The latest round of economic indicators show the U.S. economy continuing to grow without rising inflation, and corporate earnings are strong. First Call/Thomson Financial said today that fourth-quarter earnings for the companies in the S&P 500 are running 3 percent ahead of analysts' lofty expectations.