NEW YORK (CNNfn) - A week marked by several records ended with a pullback for blue chips as weary investors bailed out of the market. But the technology sector, where software maker Oracle surprised Wall Street with a strong earnings report, continued to charge ahead.
Despite the erosion in blue chip values, declines were limited by a tame inflation report and persistent investor optimism about the market.
"I think what we are experiencing here is a classic stampede of bulls in a long-term bull market," said Peter Cardillo, director of research at Westfalia Investments. (229K WAV) or (229K AIFF)
But Cardillo was quick to warn that if first-quarter corporate earnings are disappointing, the market will be in for a pullback, possibly retreating by as much as 10 percent. (188K WAV) or (188K AIFF)
The government reported that producer prices fell 0.1 percent in February, confirming views that despite its robust growth, the economy is nowhere near generating inflation.
The Dow Jones industrial average lost 57.04 points to close at 8,602.52, still ending the week 33.13 points, or 0.39 percent, higher. The blue chip index is up 8.78 percent so far this year.
On the New York Stock Exchange, advances led declines 1,478 to 1,396 as 602 million shares changed hands.
In broader markets, the technology-laden Nasdaq Composite rose 7.60 to 1,771.66, helped by Oracle's strong earnings. The index finished the week 18.57 points, or 1.06 percent, higher, and is up 12.82 percent on the year.
The S&P 500 index fell 1.31 to 1,068.61, but ended the week 12.97 points, or 1.23 percent, higher. The broad market indicator has risen 10.12 percent so far this year. (Look here for the performance of widely held stocks.)
The bond market traded in a choppy pattern, falling immediately after the PPI report, then bouncing back and finally slipping again as the dollar continued to weaken. The benchmark 30-year Treasury bond was down 12/32 of a point in price, lifting the yield to 5/89 percent.
The dollar slid after speculation hit the market that the central bank of Greece had sold $500 million for drachmas, then used the drachmas to purchase German marks.
Oracle powers technology stocks
A surprisingly strong fiscal third-quarter report from software maker Oracle (ORCL) breathed life into the technology sector, especially after three other high-tech giants warned of poor earnings last week. Shares of Oracle (ORCL) rose 1-7/16 to 29-3/16 and were the most actively traded stock on the Nasdaq.
"You see some individual companies reporting disasters while others are beating street expectations. So that's positive. That shows that the rut in that particular group is probably coming to an end," Cardillo said.
Other technology gainers included Oracle's arch-rival Microsoft (MSFT), which rose 1/2 to 82-3/8, and Intel (INTC), 1/4 higher at 76-5/8. Last week Intel stunned investors by warning first-quarter earnings would be lower than expected.
Meanwhile, National Semiconductor shares (NSM) fell only 1/16 to 20-3/16 after the company late Thursday reported a slightly lower-than-expected fiscal third-quarter profit and warned that the fourth quarter might bring a loss because of a less-than-rosy business climate, influenced in part by the Asian economic troubles.
Elsewhere, shares of Kimberly-Clark (KMB) tumbled 6-1/2, or more than 11 percent, to 50-5/8 after the company warned its first-quarter earnings will be weaker than expected.
Shares of Hilton Hotels (HLT) rose 1-13/16 to 34-13/16 after the Wall Street Journal reported Hilton may be interested in buying British hotel operator Ladbroke PLC and Circus Circus Enterprises (CIR). Circus Circus shares gained 9/16 at 25-3/4.
And shares of Metromail (ML) soared 5-5/8, or almost 22 percent, to 31-1/2 after British home shopping group Great Universal Stores agreed to buy Metromail for $831 million.
Finally, shares of Reltec (RLT) surged to 35-7/16 after pricing at 29 on the communications equipment maker's first day of trading on the Big Board. 
-- by staff writer Malina Poshtova Zang
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