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All major markets have best week of the year

NEW YORK - Investors taking profits after the week's big advance sent many stocks falling Friday, but the lack of a wholesale sell-off left many on Wall Street pleased with the market's resiliency. The Nasdaq composite index managed a small gain, and all three major indexes had their best week of 2005.

With few earnings reports and no new economic data to encourage buying, there was little impetus for investors to continue the week's rally. The major indexes have risen more than 3 percent since May 13's close, buoyed by positive economic data and falling oil prices.

A pair of merger and acquisition deals helped limit the losses, but most investors kept to the sidelines in anticipation of next Tuesday's release of minutes from the Federal Reserve's May 3 meeting. Wall Street is hoping for more clues on the state of inflation and economic growth.

"I think we're just seeing a little bit of profit taking after a nice runup in the market," said Joseph Keating, chief investment officer at AmSouth Asset Management. "I don't think it's anything more than that, at least for now."

The Dow Jones industrial average fell 21.28, or 0.2 percent, to 10,471.91.

Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index was down 1.80, or 0.15 percent, at 1,189.28, while the Nasdaq composite index gained 3.84, or 0.19 percent, to 2,046.42.

The bond market saw minimal losses, with the yield on the 10-year Treasury note climbing to 4.12 percent from 4.11 percent late Thursday. The dollar fell against most major currencies, and gold prices also lost ground.

Crude oil futures vacillated most of the session and finished modestly lower. A barrel of light crude for June delivery was quoted at $46.80, down 12 cents, on the New York Mercantile Exchange.

Falling oil prices and benign reports on inflation helped boost the stock market to its best weekly showing of the year, spurred by 100-point gains on the Dow on Monday and Wednesday. For the week, the Dow gained 3.27 percent, the S&P climbed 3.05 and the Nasdaq jumped 3.52 percent.

"It's definitely been a good run, and it's good that you see the market today sitting back, digesting a bit, relaxing," said Jay Suskind, head trader at Ryan Beck & Co. "We haven't had a huge bout of profit taking here, so maybe we're building a base, and maybe we can start trading in a higher range than we did in April."

[Last modified May 21, 2005, 01:03:17]