Blue chips fell on profit-taking in New York yesterday while tech stocks drifted higher, amid investors' concerns about third-quarter corporate earnings and the direction the market itself is headed.

The Dow Jones industrial average dropped 51.05 to 11,182.18.

Broader indicators moved higher. The Standard and Poor's 500 index edged up 2.92 to 1,484.91 and the Nasdaq composite index rose 44.38 to 3,893.89.

The numbers were a reversal of Tuesday's close, when blue chips ended the day up and tech stocks fell.

Before the market opened, Chase Manhattan Bank announced it was acquiring JP Morgan for about $36 billion in stock. JP Morgan traded down $4.19 at $181.25, after weeks of its stock price inching upward on rumours that it was an acquisition target. Chase Manhattan fell $2.13 to $50.69.