Wall Street: Thursday close

MARKETS traded sideways following the surge on Wednesday that lifted the Dow Jones Industrial Average above 10,000 and the Nasdaq Index through 2000 for the first time since before the terror attacks of 11 September. The Dow dipped 15.15 points to 10,099.14, while the Nasdaq finished ahead 7.43 points to 2054.27.

Analysts said it was understandable that the markets would take a breather given the incredible run-up of the last 11 weeks and that shares could run into profit taking at any time. David Sowerby, market strategist at investment firm Loomis Sayles, said it was wise to remember that markets never went straight up. 'Investors should at least be prepared that they're going to get some test in courage between now and year-end,' he said.

Economic numbers out gave less encouragement than the National Association of Purchasing Managers' report on Wednesday which seemed to tip a turning point in the recession-mired US economy. The Commerce Department reported that factory orders, boosted by demand for computers and military aircraft, jumped 7.1% in October, above expectations and up from a 6.2% decline in September. But economists said this merely returned order levels to where they stood in August, a recessionary month.

The Labour Department said initial weekly jobless claims fell to 475,000 last week, from 493,000 the previous week, but the level remained historically high. And jobless figures due today could show the full force of company lay-offs following the terror attacks. Economists expect the unemployment rate to rise from 5.4% to 5.6% with the loss of 189,000 jobs during November.

Retail sales figures reported by the leading retailers were discouraging. Discounters proved strongest, but even they had to offer special promotions to ring up sales. 'Thanksgiving weekend was extremely subdued, and the holiday period will also be at best subdued,' said Kurt Barnard, president of Barnard's Retail Report. 'There was lack of traffic in the malls and there was a sea of red ink at the stores.' Wal-Mart slid 95 cents or 1.7% to $55.62 after it reported sales at the low end of the expected range.

Techs retained most of their strong gains of the week. Sun Microsystems gave back 42 cents or 2.9% to $14.15, but traded at $14.26 in after-hours upon stating that it was on track to meet profit forecasts. Cisco Systems was marginally higher at $21.79, from $11 in September. Oracle added another 53 cents or 3.5% to $15.90. Intel gained 45 cents or 1.3% to $34.16 and was trading at $34.58 in extended hours trading after it raised its forecasts.

Enron, the energy trader that declared bankruptcy last weekend, slid 35 cents or 35% to 66 cents. Major lenders to Enron, Citigroup and JP Morgan Chase continued their recovery from the fall-out. Citigroup firmed 66 cents or 1.2% to $49.60. JP Morgan regained $1.36 or 3.5% to $40.38. American Express was higher by 55 cents or 1.6% to $35.16.

Millennium Pharmaceuticals fell $5.89 or 17% to $29.56 as it proposed a $2bn (£1.3bn) merger with COR Therapeutics, a maker of heart treatments. COR's shares leapt $8.46 or 46% to $28.20.

Among Dow components, Boeing rose $1.22 or 3.4% to $37.11, Walt Disney tacked on 89 cents or 4.1% to $21.54, ExxonMobil lost $1.55 or 4% to $37.33 and General Motors gave up $1.51 or 3% to $52.64.