Market Watch

The Associated Press
Saturday January 20, 2001

NEW YORK — Investors, more cautious than relieved after a week of earnings news that turned out better than expected, took profits Friday and sent stocks mostly lower. 

Blue chips tumbled after Home Depot warned of disappointing quarterly results. Tech stocks advanced, but disappointing revenues from Sun Microsystems helped offset the gains in the Nasdaq composite index. Analysts downplayed the declines, noting they occurred at the end of a healthy week, particularly for the tech sector.  

“The market is somewhat overbought now,” said Charles Pradilla, chief investment strategist at SG Cowen Securities. “The market is ready for some pullback, some consolidation and profit-taking. We’re not out of the woods yet, but I don’t see a huge dive from here.”