Stock prices slipped in active trading Tuesday, with the Dow Jones industrial average dropping below the record 3,900-plus level it had pierced just a few days ago.

The market actually opened higher than the 3,912.79 average of Monday, but slipped to a 3,889.43 by noon.

Prices edged up to pass the 3,900 level in the early afternoon, but dropped to its final 3,895 reading when the Tuesday market closed.

There's no reason for worry about the record highs, say Cape Girardeau stock brokers.

"The stock market has been strong this year," said Donna Domian of Edward D. Jones & Co., 1749 Independence. "The market did well throughout 1993, and is doing well in January."

Marsha Limbaugh agreed.

"The market is showing confidence," said Limbaugh of A.G. Edwards & Sons, 97 N. Kingshighway. "People have been surprised at the recent record highs (3,914 on Friday and 3,912 Monday), but we feel that there's more to come on the up side."

"The Dow is just a gauge," said Bob Etherton of Edward D. Jones at 215 N. Sprigg. "It gives us a good reading of what the market is doing."

The Dow is comprised of 30 blue-chip stocks and has been used as a gauge for a number of years.

The Dow topped the 1,000 mark the first time in 1973, hit 2,000 in 1987, and hit its new high of 3,914 last week after hitting 3,800 for the first time earlier this month with the Jan. 6 reading of 3,803.

Market watchers were not overly impressed with Friday's 3,914 milestone.

"I can agree with them," said Domian. "We had some big increases by a few stocks to help the soaring Dow. But there are still a lot of blue chip stocks out there that are good bargains in the market."

The Friday gains were prompted primarily due to big jumps in IBM and Caterpillar. But on the same day decliners included American Telephone and Telegraph and Procter and Gamble.

The key barometer to the Tuesday reading was a drop in IBM shares, which lost ground after the company reported its fourth-quarter earnings. Despite showing its first profit in more than a year in the three-month period, sales were lower than expected, and that sent IBM shares tumbling.

Traders seized an opportunity to take some profits after the tenacious rally that has seen the Dow gain nearly 160 points since the beginning of the year.

Stocks were also pressured by better-than-expected reports on December home sales and a rise in consumer confidence during the earlier part of the month, which sent bond prices lower as interest rates inched higher.

Declining issues outnumbered advancing ones by about 4 to 3 on the New York Stock Exchange, with 881 up, 1,208 down and 661 unchanged.

Big Board volume totaled 326.09 million shares as of 4 p.m., against 261.71 million in the previous session.

Domian and Limbaugh each credit three reasons for the continued investor interest in stocks.

-- The feeling by people that inflation is under control and will remain down.

-- Better expectations for higher earnings by corporations.

-- The feeling by consumers that there seems to be some rebound in the economy.

"Consumer confidence has also been boosted by lower interest rates that have pushed house sales up," said Domian, Limbaugh and Etherton.