Stocks edged lower yesterday as investors grappled with relentless worries over the nation's soft economy and cashed in on gains after Wall Street's four-week winning streak.

"With the market having come up as much as it has from the lows, we need positive economic data to push stocks higher," said Mr Bill Meehan, chief market analyst at Cantor Fitzgerald. "I just don't see where that's going to come from."

Dow stock component JP Morgan Chase & Co lost $1.40 to $49.20 after Prudential lowered its rating on the financial powerhouse, saying the slower economy should cause problem loans to increase. Financials American Express Co and Citigroup also dragged on the Dow.

Lucent Technologies, the most active on the New York Stock Exchange, lost 63 cents to end at $10.52.