Stocks slip after 5 days of gains

NEW YORK -- Investors pulled money out of stocks Friday after a five-day rally left the market at its highest levels in nearly a year.

Stocks slipped in quiet trading after the recent string of gains and a drop in oil prices. Crude slid 3.7%, which hurt some energy stocks like ExxonMobil. That overshadowed a rosier profit forecast from FedEx and a government report on improving sales at wholesalers.

Even with the losses, stocks still logged big gains for the week.

The forecast from FedEx is important because its delivery business is seen as an indicator of how healthy the economy is. FedEx cited stronger international shipments and cost-cutting for the improvement. Investors track demand at industrial companies because rising orders would be one of the first signals that the economy is strengthening.

Separately, the Commerce Department reported that sales at the wholesale level rose in July by the biggest amount in more than a year, though inventories fell for a record 11th straight month. The rise in sales could lead businesses to start adding back to inventories, which would be a good signal for the economy.

The gains in industrial stocks came at the expense of areas that have been leaders in the market's six-month rally such as technology and financial shares.

"The market always overshoots on either side. I think we're at the point in the move where we need to see the fundamentals catch up to support these levels," said Sean Simko, head of fixed income management at SEI Investments in Oaks, Pa. "In the short-term, the market is going to take a little breather."

The Dow Jones industrial average fell 22.07, or 0.2%, to 9,605.41. The index closed Thursday at its highest level since October.

The broader Standard & Poor's 500 index fell 1.41, or 0.1%, to 1,042.73, and the Nasdaq composite index fell 3.12, or 0.2%, to 2,080.90.

The eighth anniversary of the 9/11 terror attacks brought reflection on Wall Street also served a reminder of how little progress the stock market has made since then because of the steep slide that began two years ago. On Sept. 10, 2001, the Dow ended at 9,605.51; that is nearly identical to Friday's close of 9,605.41.