Stock Prices Decline; Dow Off 5.62 : Analysts Cite Profit Taking, Some Firming in Oil Prices

Stock prices declined in active trading Tuesday as investors took profits from the market’s latest gains and news of strengthening in some oil prices depressed a number of issues.

The Dow Jones average of 30 industrials dropped 5.62 points to 1,692.66, while losers and gainers were virtually even on the New York Stock Exchange.

Analysts said that, although some oil prices moved higher Tuesday--a bearish factor for the stock market--the sell-off probably was caused more by traders anxious to take profits before the market encountered a downward “correction” in prices.

The Dow average since last Sept. 20 has risen more than 400 points--190 of them by Tuesday’s close--and many traders believe that the market is overbought and ready for a sharp drop before it resumes its upward trend.

Energy Issues Surge

Energy issues moved broadly higher in heavy trading as some spot-market oil prices increased and futures prices advanced before retreating in late trading. Occidental Petroleum was up 3/4 to 27, Mobil rose 5/8 to 30, Texaco rose 1/2 to 29 1/2, Kerr-McGee was up 1 1/8 to 29, Chevron rose 1 1/8 to 37 5/8 and Atlantic Richfield rose 2 to 55 1/2.

Eastern Airlines was up 1/2 to 8 3/8 in heavy trading. Eastern announced Monday that it had agreed to be acquired by Texas Air, a move that would create the nation’s largest airline operator and intensify airline fare wars.

Texas Air rose 2 5/8 to 22 3/8 to lead the most-active list on the American Stock Exchange. It posted a two-day gain of 5 3/8.

Other airline issues moved lower in the face of stronger oil prices and the Texas Air-Eastern merger. Delta fell 2 3/8 to 40 7/8 in active trading, bringing its two-day fall to 4 3/4 points. AMR fell 2 1/8 to 49 3/4, UAL was down 2 3/4 to 55 5/8 and Pan Am fell 1/8 to 8 1/8.

Post-split shares of Union Carbide, trading on a when-issued basis, rose 2 to 18 1/2 and led the New York Stock Exchange’s most-active list with 5.27 million shares changing hands. Carbide recently declared a 3-for-1 stock split and a special dividend right as part of a reorganization plan. Carbide’s regular common stock was up 4 to 93 3/8.

Chrysler was down 1 3/8 to 56, Ford fell 1 7/8 to 69 3/8 and General Motors fell 1 to 78 1/8, although GM and Ford posted increases in their mid-February sales figures released Tuesday.

Blue Chips Mixed

Among blue chips, Eastman Kodak was up 2 1/2 to 54 3/4; U.S. Steel, up 3/8 to 22 5/8; International Business Machines, down 1 3/8 to 157 1/2; General Electric, down 1 3/4 to 75 1/2, and McDonald’s, down 5/8 to 86 1/2.

The NYSE’s composite index fell 0.27 to 128.93.

Big Board volume totaled 147.96 million shares, against 144.67 million on Monday.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,960, compared to 2,742 on Monday.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 174.93 million shares.

Standard & Poor’s index of 400 industrials fell 0.25 to 247.21, and S&P;’s 500-stock composite index was down 0.55 to 223.79.

Bond Prices Steady

In the bond market, prices were little changed in quiet trading and interest rates held near recent levels.

Bonds have benefited recently from the slide in oil prices.

In the secondary market for Treasury securities, prices of short-term governments were unchanged to up 1/32 point, intermediate maturities dipped 1/32 point and long-term issues rose from 1/8 point to point, according to the investment firm of Salomon Bros.

Treasury Indexes Rise

The Merrill Lynch daily Treasury index, which measures price movements on all outstanding Treasury issues with maturities of a year or longer, was little changed at 113.46, up 0.05 from late Monday. The Shearson Lehman daily Treasury bond index, which makes a similar measurement, edged up 0.47 to 1,187.84.

In corporate trading, industrials rose point in active dealings and utilities were unchanged in quiet activity.

Among tax-exempt municipal bonds, general obligations and revenue bonds were unchanged in light trading.

Yields on three-month Treasury bills were up three basis points to 7.03%. Six-month bills were steady at 7.08%, and one-year bills rose two basis points to 7.08%.