Market Closes Mixed; Dow 30 Declines 1.26

The stock market settled for a mixed showing Thursday as the rally of the past several sessions bogged down.

The Dow Jones average of 30 industrials, which closed Wednesday at a new high, slipped back 1.26 to 1,374.31.

Volume on the New York Stock Exchange reached 121.53 million shares, up from 120.36 million on Wednesday

Government statistics issued Thursday morning provided little support for hopes of revived economic growth.

Imports Exceed Exports

The Commerce Department reported that the country’s merchandise trade deficit set a record in September, with imports exceeding exports by $15.55 billion. It also said new factory orders dropped 0.6% last month.

Additionally, the agency said that the index of leading economic indicators posted a smaller-than-expected 0.1% gain.

Nevertheless, Malcolm Baldrige, secretary of commerce, said five consecutive monthly increases in the leading indicators index portended continued economic growth in 1986.

At the same time, speculation persisted on Wall Street that the Federal Reserve might soon relax its credit policy further. Some analysts argue that the weaker the current performance of the economy, the more likely some Fed action becomes.

After the close, the Fed reported an $8.5-billion jump in the money supply for the week ended Oct. 21. However, Paul A. Volcker, the Fed’s chairman, suggested earlier this week that the central bank isn’t seriously worried that recent growth in the money supply might rekindle inflation.

Bethlehem Steel dropped 3/4 to 12 1/2 in active trading. On Wednesday, the company reported a third-quarter loss, projected another loss for the current quarter and omitted its dividend.

Exxon Raised Dividend

Exxon, which raised its quarterly dividend from 85 cents a share to 90 cents, climbed 1 to 55, trading at new highs.

CBS Inc. rose five to close at $118, a rise that market sources said was due to speculation that the major television network was once again a takeover target.

Data General lost 1 1/8 to 40 on the company’s report of sharply lower quarterly earnings. Among other computer and technology issues, International Business Machines fell 1 to 129 7/8, Digital Equipment 1 1/8 to 112 3/4 and Texas Instruments 1 1/8 to 90 3/8.

Warnaco jumped 3 5/8 to 30 1/8. The company said a group of investors headed by its chief executive proposed to acquire it for a package of cash and debt securities.

Orange Co. dropped 7/8 to 8, recording one of the day’s biggest percentage declines. The company said plans for an $11-a-share buy-out had been dropped because the investor group that intended to acquire it couldn’t get the necessary financing.

Advancing issues slightly outnumbered declines in the overall tally on the Big Board. The exchange’s composite index dipped 0.04 to 109.65.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 147.17 million shares.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,354, compared to 2,692 on Wednesday.

Indexes Decline

Standard & Poor’s index of 400 industrials lost 0.08 to 211.06, and S&P;’s 500-stock composite index was down 0.25 at 189.82.

The NASDAQ composite index for the over-the-counter market gained 0.28 to 292.54.

At the American Stock Exchange, the market-value index closed at 228.61, up 0.50.

In the bond market, prices finished little changed as the federal government completed its $17.75 billion in auctions of new notes and bonds.

The Treasury Department sold $4.76 billion in 20-year bonds at the lowest yields since it began auctioning 20-year securities in 1981.