Blue Chips Pace Mixed Market; Dow Up 14.37

The stock market was mixed Monday in a split-personality session that saw blue chips rally while many secondary issues turned weak.

The big-name stocks rebounded from a hectic sell-off at the close Friday that was attributed to program trading involving stock index futures and options that were expiring.

The Dow Jones average of 30 industrials climbed 14.37 points to 1,782.93. But declining issues outnumbered those advancing by more than four to three in the overall tally of New York Stock Exchange-listed issues.

Volume on the Big Board slowed to 143.81 million shares from Friday’s 199.22 million.

On Friday, the Dow Jones industrial average tumbled 35.68 points for its fourth-largest drop ever. The selling was attributed almost entirely to last-minute maneuvering by professional traders engaged in activity involving stock index options and futures.

Secondary Issues Falter

Broader market measures that include the many smaller stocks not involved in this so-called program trading actually finished Friday’s session with gains.

On Monday, the secondary stocks faltered, and buyers concentrated on the big-name issues, apparently acting on the belief that the drop in the blue-chip sector had pushed them down to “bargain” levels.

The Dow Jones industrials jumped 20 points in early trading, retreated to show a small loss at mid-afternoon and then surged ahead once more.

The seesaw activity came amid news that the Organization of Petroleum Exporting Countries had failed to reach an agreement on production quotas as a means of shoring up world oil prices.

Among energy stocks, Chevron dropped 5/8 to 37, Atlantic Richfield lowered 1 3/4 to 51, Amoco dropped 7/8 to 59 and Mobil dipped 1/8 to 29 1/2. But Exxon edged up 1/8 to 55.

Airline stocks benefiting from downward pressure on fuel costs included UAL, up 7/8 at 56 7/8; AMR, up 1 1/8 at 52 3/4, and Delta, up 3/4 at 42.

In the blue-chip sector, General Motors rose 1 to 84 3/4, Sears, Roebuck gained 1 to 47, McDonald’s rose 1 to 95 1/2 and Du Pont rose to 72 3/4.

Union Carbide, which reached a tentative settlement on claims against it arising from the 1984 disaster at its Bhopal, India, plant, gained 1 3/4 to 21 1/8.

Earnings disappointments continued to depress selected computer and technology stocks.

Scientific-Atlanta tumbled 2 7/8 to 11 after the company said its results for the fiscal quarter ending next week would fall short of expectations.

Honeywell, which projected sharply lower first-quarter earnings, slumped 2 5/8 to 71 3/8.

Large blocks of 10,000 or more shares traded on the NYSE totaled 3,680, compared to 2,811 on Friday.

The NYSE’s composite index gained 0.74 to 135.54. Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 172.91 million shares.

Standard & Poor’s index of 400 industrials rose 2.13 to 260.16, and S&P;’s 500-stock composite index was up 1.99 at 235.33.

The Wilshire index of 5,000 equities closed at 2,409.418, down 18.331.

The NASDAQ composite index for the over-the-counter market lost 1.92 to 370.67.

At the American Stock Exchange, the market-value index closed at 267.72, down 3.23.

Bond Prices Gain

Bond prices gained, buoyed by the continuing disarray in OPEC and prospects for weak oil prices. Interest rates declined.

But prices came off their highs in nervous trading late in the day amid reports of a military confrontation between the United States and Libya.

The yield on the benchmark 30-year Treasury bond fell to 7.92% from 7.96% late Friday.

In the secondary market for Treasury securities, prices of short-term governments rose by 3/32 point to 1/8 point, intermediate maturities rose by 1/8 point to 5/16 point and long-term issues were up by 9/16 point to 19/32 point, according to the investment firm of Salomon Bros.

In corporate trading, industrials gained point and utilities rose 3/8 point in light volume.

Among tax-exempt municipal bonds, general obligations and revenue bonds finished unchanged from late Friday’s levels after mostly quiet trading.

The federal funds rate--the interest on overnight loans between banks--traded at 7.188%, down from 7.31% late Friday.