Cyclicals push Dow to high; techs suffer

Call it a shift, a rotation, a see-saw.

Whatever the term, it happened again in the stock market Thursday:Investors moved their money away from high-flying computer andInternet stocks - the hot stocks over the last few months - and intomore stable, cyclical stocks.

The Nasdaq composite index, hit hard in recent sessions onaggressive selling of technology issues, dropped 21.93, or 0.9percent, to 2,528.44, after Amazon.com indicated that more losses arelikely in future quarters.The Dow Jones industrial average reached its third straight recordhigh close and fifth record in seven sessions, rising 32.93, or 0.3percent, to 10,878.38."It's more of the same shift that has been evident all week andlast week," said Larry Wachtel, market analyst at PrudentialSecurities. "Again, the Dow is doing well, the Nasdaq is slowing,financial and cyclical stocks are in the lead, technology andpharmaceutical stocks are in the Dumpster."The Standard & Poor's 500 index fell 8.08, or 0.6 percent, to1,342.83.Oil, metals and financial companies, considered the cheapeststocks in the market, led the Dow. Investors have been buyingcyclical issues because of an improved outlook for the globaleconomy, economists said.Unlike the trading pattern in recent days, though, the gainsweren't confined to cyclical issues. Financial stocks also gainedafter a government report on employment costs signaled no change ininterest rates.Wages and benefits for American workers rose a slight 0.4 percentin the first three months of the year, the smallest amount on record,indicating the lowest unemployment in 30 years is still notgenerating wage pressures."We expect the absence of inflation pressures will keep the Fed onthe sidelines for the time being," said Tim O'Neill, chief economistfor Harris Bank.American Express shares gained $2.31 1/4 to $135.37 1/2,contributing most to the Dow's advance. J.P. Morgan and Citigroupalso advanced.Investors continued to batter technology shares. Amazon.comslumped $25.25 to $168.25. The online retailer reported lateWednesday a first-quarter loss of 23 cents a share, narrower than the29 cents analysts expected. However, the company expects its growthto slow and losses to increase as it continues to invest heavily innew businesses.Drug stocks again took big hits as investors continued to takeprofits in that sector as well. Merck fell 37 1/2 cents to $70.371/2.Contributing: Associated Press