Wall Street: Thursday close

ALAN Greenspan was more upbeat, but investors were less so as they took some money off the table after Wall Street's surge of the past few days.

The Dow Jones Industrial Average, which recorded three double digit gains in the previous four days, came off 48.92 points or 0.5% to 10,525.37. The Nasdaq Index gave up 8.77 points or 0.5% to 1881.63.

Analysts said the more subdued tone was less to do with Federal Reserve Board chairman Greenspan than a 'digestion of the feast' investors have enjoyed since data released last week indicated the US economy was strengthening. Investors have been betting that a profit recovery cannot be far behind by loading up on financials, industrials, selected techs and mobile stocks hammered in the past two years.

Greenspan, in testimony before Congress, updated his remarks from two weeks ago to reflect growing confidence that the world's biggest economy is emerging from its slump. 'Recent evidence increasingly suggests that an economic expansion is already well under way, although an array of influences unique to this business cycle seems likely to moderate its speed,' he said.

'We have seen encouraging signs in recent days that underlying trends in final demand are strengthening, although the dimensions of the pickup remain uncertain. If the tentative indications that the contraction phase of this business cycle has drawn to a close, we will have experienced a significantly milder downturn than the long history of business cycles would have led us to expect.'

Some of the biggest gainers of the past week were taken down. Aluminium maker Alcoa retreated 14 cents or 0.4% to $39.30, AT&T lost 43 cents or 2.7% to $15.81 and Eastman Kodak shed 58 cents or 1.8% to $31.85. Boeing slid $1.53 or 3% to $48.33 after it lost a multi-billion dollar South African aircraft contract to rival Airbus. Engine maker United Technologies, also a component of the Dow, fell 30 cents or 0.4% to $74.70. General Electric fell back 64 cents or 1.5% to $40.91.

The mobile sector continued its recovery. AT&T Wireless, up 8.8% on Wednesday, firmed another 32 cents or 3.5% to $9.59. Nextel, ahead nearly 15% on Wednesday, gave back 12 cents or 1% to $6.16.

General Motors, which has rallied strongly in the past few days, added $1.50 or 2.5% to $61.42 on an upgrade from Merrill Lynch. Pharmaceuticals company Sepracor plunged $27.63 or 58% to $19.64 after the Food and Drug Administration declined to approve its new allergy medicine. Financial and insurance firm Conseco lost 16 cents or 4.3% to $3.59 after its chief financial officer resigned during a closely watched audit process.

Retail figures painted a tale of two companies. Wal-Mart rose 80 cents or 1.3% to $61.70 after it reported February same store sales up a higher-than-expected 10.3%. Fashion house The Gap disclosed a 17% sales drop. Its shares, down from $35 last May, closed up 29 cents or 2.2% to $13.47.