But the market repeated a now-familiar pattern of retrenching whenever it climbed to a point where investors believed it would be prudent to cash in their profits.

So the Dow Jones industrial average closed down 21.45, or 0.2 percent, at 10,106.13, according to preliminary calculations, having risen as much as 111 in the first hour. The Dow's moves mirrored those yesterday, when it surged nearly 140 points on positive comments from Federal Reserve Chairman Alan Greenspan, but then closed up a slim 12.32.

The broader market also finished lower. The Standard & Poor's 500 index declined 3.16, or 0.3 percent, to 1,106.73, while the Nasdaq composite index fell 20.39, or 1.2 percent, to 1,731.49.

For much of today, there was modest buying activity pegged largely to a Commerce Department report on the gross domestic product. GDP rose at an annual rate of 1.4 percent in the final three months of 2001, surpassing analysts' expectations for a 0.9 percent increase.

The Purchasing Management Association of Chicago also had positive news, saying its index of area business rose to 53.1 percent in February on a seasonally adjusted basis from 45.1 in January. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 signals a contraction.

The Chicago survey is considered a reliable forecast of the index of the Institute for Supply Management, formally the National Association of Purchasing Management, which is due to be released tomorrow.

But Wall Street's response, from enthusiastic to uninspired, was similar to yesterday when stocks advanced strongly after Fed Chairman Greenspan told Congress the recession is nearly over, although the economic recovery won't be particularly robust. Stocks later lost most of those gains.

Analysts attributed the market's inability to hold its gains to the fact that the pace of the economic recovery will likely be slow.

"I think Mr. Greenspan underscored the whole thing. He talked about moderation. The economy is coming out of the recession, but it is not vigorous," said Larry Wachtel, market analyst at Prudential Securities.

Prospects of a robust turnaround would likely prompt investors to buy up riskier tech shares, Wachtel said. Instead, tech continues to slump as companies put off orders for new computer and networking equipment.

"Capital spending is certainly not vigorous, which is why the Nasdaq is down. I see no signs that companies are spending on telecommunications, software or technology," Wachtel said.

The tech sector fell after a first-quarter profit warning from Gateway. Gateway fell 50 cents to $4.60.

Other tech losses came from Dow industrial Intel, down $1.31 at $28.58, and Dell Computer, off 58 cents at $24.69.