Stocks Mixed in Active Trading; Dow Gains 2

Stock prices turned mixed Wednesday following a steep decline in the previous session. Trading was active.

The Dow Jones average of 30 industrials rose 2.24 points to 1,300.40.

But losers led gainers four to three among New York Stock Exchange listed issues.

Big Board volume totaled 105.71 million shares, against 111.93 million on Tuesday.

“I think it wasn’t so much a strong day but one of leveling off from a market that had been under pressure,” said Lew Smith of Bear, Stearns & Co.

On Tuesday, the Dow Jones average sank 10.98 to 1,298.16, its lowest level since it stood at 1,297.38 on June 19.

Merck Falls Sharply

“The principal areas that showed strength were rather well defined: technology stocks, airlines and drugs, though Merck was an exception. They typically display more volatility than most other groups,” Smith added.

Merck fell sharply on concerns about one of its drugs causing several deaths in Europe. A component of the Dow average, it pulled that index down 8.29 points at midday. But the stock trimmed its losses to 2 7/8 and closed at 107 7/8.

International Business Machines rose 3/4 to 127 1/2, Control Data was up 1 1/8 at 18 3/4 and Texas Instruments was up 1 1/8 at 94 7/8.

AMR, parent of American Airlines, was up 1 at 40 3/4. UAL, United’s parent, was up 3/4 to 49 7/8. Airline stocks had led the Tuesday decline.

Upjohn was up 2 5/8 to 103 3/4.

There was little reaction in the market to the Commerce Department’s report that housing starts rose a strong 6.2% in August, the biggest increase in five months.

More significant will be the department’s initial, or “flash,” estimate of the economy’s third-quarter performance, due to be released Friday.

Richardson-Vicks fell 1 1/8 to 49. The company rejected a sweetened $56-a-share merger offer from the U.S. subsidiary of Unilever and adopted a series of steps designed to thwart the hostile takeover bid, including the distribution of a new, special preferred stock. But Unilever went to court seeking to block the consumer products company.

Apple Computer rose 1 to 16 in over-the-counter trading. Steven P. Jobs resigned Tuesday as chairman, accusing management of the huge company that he helped create in a garage nine years ago of a “hostile posture” toward his latest venture. Jobs, 30, told Apple’s board of directors last week that he planned to start a new company and take several employees away from Apple.

Big Board volume leaders included American Express, down 5/8 at 40 5/8; City Investing, down 1/8 at 7, and American Telephone & Telegraph, up at 20 7/8.

The Federal Communications Commission voted unanimously to drop a requirement that AT&T; market its telephone equipment through a separate subsidiary. That will save AT&T; about $1 billion a year, the company said.