The benchmark Dow Jones index managed a slight gain on the first day of trading in 1999 after profit-taking spoiled attempts to reach a new record high.

The Dow finished 2.84 points higher at 9,184.27 after an early rally put it just 25 points short of its record close of 9,374.27 on 23 November.

However, the technology-heavy Nasdaq index managed to achieve that gaol. The index ended up 15.35 points at 2,208.04, surpassing the record set last Thursday.

Dealers said the market was being driven by expectations of a large flow of cash into mutual funds.

"I think we are just seeing a bit of profit taking," said Bill Meehan, chief market strategist at Cantor Fitzgerald.

Analysts said the launch of the euro, the single European currency, and the continuing pace of merger activity also helped create a buoyant tone.

Among the big movers, America Online fell 11 3/16 to 148 13/16, giving back some gains made in the final week of 1998.

AT&T rose 2 11/16 to 77 15/16 after Merrill Lynch upgraded the stock.