DOW SHAKES SELL-OFF; TECH STOCKS SALES DON'T SLOW INDEX.

Byline: Robert D. Hershey Jr. The New York Times

In a session showing exceptional shifts in focus, investors Wednesday cashed in profits in high-flying technology and consumer stocks and switched their money into neglected issues that would benefit from revived world economic growth.

When the churning ended, seven of the 30 components of the Dow Jones industrial average had surged more than 3 points, with Alcoa jumping $6.5625 to $53.25, and six Dow stocks had more than 3 points, with Wal-Mart down $5.9375, to $98.625.

The blue-chip gauge eked out a 16.65-point advance to 10,411.66, its third straight record but well off its day's high. It was ahead by 131 points at midday. The Standard & Poor's 500 stock index, however, fell 0.83 percent for the session, and the Nasdaq market slumped 2.95 percent.

``There's definitely the beginning of a sector rotation going on that could become violent, given the relative valuations,'' said Rosanne Cahn, equity economist at CS First Boston. ``All the stuff that's cast a pall over the industrial cyclicals is starting to turn around.''

Over the past few sessions investors have started to gravitate toward such economically sensitive industries as paper, chemicals, metals and machinery on the belief that foreign economic crises are abating and that world economic growth will pick up, aided by last week's European interest-rate cuts.

At the same time, a select handful of favorite big-name stocks have vaulted ever higher. ``Investors are taking another look at price-to-book and price-to-earnings ratios,'' said Daniel Eagan, a portfolio manager at Black Rock in Philadelphia. ``The high valuations are causing them to look for other opportunities.''

Among the winners were Dow Chemical, up $8, to $109.50; Georgia Pacific $6.625, to $91.25; Caterpillar $5.9375, to $60.6875, and Nucor, a steel company, $3.50, to $55.8125.

``We have a market that's moving away from the defensive names, with people attracted to cyclicals,'' said Gary Dickinson, portfolio manager at Columbia Partners in Washington. ``Most of the problems of the global economy may be behind us.''

Investors' interest in smaller stocks has also picked up in recent sessions. The Russell 2000 index pushed up Wednesday morning, briefly moving into plus territory for the year before its substantial gain largely evaporated during the afternoon. The Standard & Poor's index of small-capitalization stocks posted a 1.15 percent gain Wednesday, trimming its decline so far this year to 7.37 percent.