The Dow Jones industrial average closed down 75.62, or

0.9 percent, at 8,440.04, according to preliminary calculations. The pullback followed a two-day gain of 186.76.

The broader market also retreated. The Nasdaq composite index fell 8.94, or 0.6 percent, to 1,457.22, following a two-day gain of 41.79. The Standard & Poor's 500 index declined 7.59, or 0.8 percent, to 911.43, having risen 27.01 in the previous two sessions.

The losses were largely attributable to a natural pullback following two days of rallies, but also reflected investors' discomfort with current stock valuations. Still, analysts expect the market to resume its upward track given how first-quarter earnings results have for the most part exceeded Wall Street's expectations.

"At this point, we would avoid chasing stocks but wait for at least one to two days of market weakness before buying," said Richard Dickson, senior market strategist at Lowry's Research Reports in Palm Beach, Fla., in his daily market report.

The Commerce Department said orders to U.S. factories for durable goods rose by an unexpected 2 percent in March. But much of that was due to a surge in demand for military equipment for the war in Iraq, not to businesses and consumers buying more big-ticket items.

Profit taking contributed to the market's losses today. BellSouth fell 67 cents to $23.54 after rising $2.50 Wednesday on profits that topped Wall Street's forecast by 6 cents a share.

Barr Laboratories dropped $5.50 to $52.70 after the generic drug maker posted fiscal third-quarter earnings that were a penny shy of expectations.