The Standard & Poor's 500-stock index fell, ending its longest winning streak since 1997, as investors expressed concern that the Federal Reserve may keep raising interest rates into next year.
"The Fed will start to tighten policy as we progress through 2005," said Benjamin Pace, who oversees $22 billion as chief investment officer at Deutsche Bank Private Wealth Management in New York. "That's a bit of a headwind for our market. The Fed is firmly in control of this market."
The S&P 500 declined 1.28, or 0.1 percent, to 1164.89, with energy shares accounting for almost the entire decrease. The Dow Jones industrial average rose 3.77, to 10,391.31, lifted by shares of Altria Group. The Nasdaq composite index rose 0.31, to 2039.25, its sixth consecutive gain.
The S&P 500 Energy Index fell 1.4 percent, for the steepest decline among the S&P 500's 24 industry groups. Valero Energy, the No. 3 U.S. oil refiner, slumped $1.58, to $41. Refining revenue growth could weaken as U.S. inventories of petroleum products increase and demand slows over the next three to six months, Merrill Lynch analyst Andrew Fairbanks wrote in a note to investors. ConocoPhillips, the largest U.S. refiner, slipped $1.59, to $86.77.
Altria rose 36 cents, to $54.42. The parent company of tobacco company Philip Morris may be valued at $83 a share if it proceeds with its plan outlined last week to split into two or three units, Barron's reported, citing analysts.
Pfizer fell 38 cents, to $28.41, for the second-biggest decline in the Dow average. The drugmaker said it is discussing with U.S. regulators whether to add a stronger warning to its Bextra painkiller about a rare and serious skin reaction. Bextra is a rival medication to Merck's Vioxx, which was pulled from the market on Sept. 30 because of a link to heart attacks.
Novell jumped 65 cents, or 9.5 percent, to $7.51, for the biggest gain in the S&P 500. The software maker said Microsoft agreed to settle a possible antitrust suit related to Novell's Netware operating system for $536 million. Microsoft shares slipped 3 cents, to $29.28.
* The New York Stock Exchange composite index fell 16.23, to 6890.00; the American Stock Exchange index fell 7.43, to 1319.75; and the Russell 2000 index of smaller-company stocks fell 2.21, to 602.08.
* Declining issues outnumbered advancing ones by 5 to 3 on the NYSE, where trading volume fell to 1.36 billion shares, from 1.72 billion on Friday. On the Nasdaq Stock Market, decliners outnumbered advancers by 6 to 5 and volume totaled 1.6 billion, down from 1.89 billion.
* The price of the Treasury's 10-year note fell $3.13 per $1,000 invested, and its yield rose to 4.22 percent, from 4.18 percent on Friday.
* The dollar fell against the Japanese yen and rose against the euro. In late New York trading, a dollar bought 105.51 yen, down from 105.65 late Friday, and a euro bought $1.2911, down from $1.2962.
* Light, sweet crude oil for December delivery settled at $49.09, down 52 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $432.70 a troy ounce, from $433.60 on Friday, on the New York Mercantile Exchange's Commodity Exchange.