FINANCIAL MARKETS : Profit Taking Halts Dow’s March

Blue-chip stocks settled lower on profit taking Tuesday, while bond yields edged higher as investors awaited a speech by Federal Reserve Board Chairman Alan Greenspan.

The Dow Jones industrial average slipped 3.12 points below its record high reached Monday, to 4,550.56.

The Nasdaq was the star performer among broader indicators, thanks to another strong showing by technology issues.

Market professionals eager to boast the best picks possible at the close of the second quarter eagerly snapped up computer and related shares.

The Nasdaq composite index scored another record by rising 7.74 points to 929.83, marking its sixth straight all-time high.

The New York Stock Exchange composite index fell 0.42 point to 291.76, and Standard & Poor’s 500-stock index dipped 0.24 point to 544.98.

On the Big Board, losers nosed out gainers by about 6 to 5. Volume rose to 384.30 million shares from 323 million on Monday.

Market analysts said stocks paused after their record-setting advance as investors opted to sell and collect some of their recently accumulated profits.

A humdrum session for bonds offered nothing to inspire stocks. The Treasury’s main 30-year bond yield rose to 6.58% from 6.56%, while its price, which moves in the opposite direction, slipped 9/32 point, or $2.81 per $1,000 in face value.

Both the bond and stock markets appeared stuck in holding patterns while awaiting clues to Fed interest rate policy, which Greenspan could reveal in a speech scheduled for Tuesday night at the Economic Club of New York.

The notion that interest rates are headed down was bolstered by a government report that depicted economic weakness. The Commerce Department said housing starts, an important indicator of economic vitality, fell 1.3% in May despite lower mortgage rates that typically stimulate the home building industry.

Among the market highlights:

* Among high-tech companies: Micron rose 4 1/2 to 57 3/4; Intel added 3 1/4 to 65, Compaq Computer was up 2 3/8 to 45 3/8 and IBM rose 3 3/4 to 97 3/4. Apple rose 3 to 47 3/8 and Microsoft added 1 9/16 to 91 3/8.

* Citicorp rose 1 5/8 to 58 3/4. The bank holding company announced plans to repurchase up to $3 billion of common or convertible preferred stock over the next 24 months.

* Walt Disney dipped 1/8 to 58 1/4 after the company unveiled plans for a fourth theme park.

* Franklin Quest tumbled 5 1/8 to 26 3/4 after it reported lower quarterly earnings.

* The Big Three car makers rose on hopes that the Fed will cut interest rates, a move that could boost their sales. Chrysler rose 1 7/8 to 46 1/4, GM added 1 1/2 to 48 1/4 and Ford was up 5/8 to 30 5/8.

* Bolt Beranek soared 9 1/8 to 27 5/8 on news that it had reached an agreement with AT&T; to provide businesses with a broad range of services for access to the Internet. AT&T; rose 1/8 to 52 7/8.

* Santa Fe Pacific Pipeline Partners surged 4 to 35 7/8. The medium-term investment rating on the stock of the pipeline owner and operator was raised to “above average” from “neutral” by Merrill Lynch.

In Tokyo, the 225-share Nikkei average fell 34.36 points to 14,665.70, while Frankfurt’s 30-share DAX average ended at 2,136.68 points, down 5.07 points. London’s FTSE-100 average dipped 4.1 points to 3,377.2. Mexico’s Bolsa index fell 20.18 points to close at 2002.25.