Dow Slips 8.16; Bond Prices Gain

Stock prices pulled back a bit Thursday as traders cashed in on the market’s recent gains. However, the credit markets managed a bit of fanfare at the end of a holiday-shortened week with government bond prices sporting solid gains when trading came to an early close.

The Dow Jones average of 30 industrials dropped 8.16 to 1,900.87, reducing its gain for the week to 15.61 points.

Volume on the New York Stock Exchange tailed off to 108.26 million shares from 150 million Wednesday.

ITT led the active list, up 1 3/8 at 58 1/8 on turnover of more than 3.6 million shares. The company and France’s state-owned CGE have announced an agreement to merge their telecommunications and office-automation businesses in a transaction that would yield ITT $1.8 billion in cash if it is approved by the French government.

Pulte Home tumbled 1 3/4 to 18 1/8. The company said it expects to report net income for the second quarter of less than $3 million, down from $6.1 million in the comparable period last year.

Pandick dropped 7/8 to 17 5/8. On Wednesday the company reported flat quarterly earnings.

Losers among the blue chips included Eastman Kodak, down at 57 3/4; American Telephone & Telegraph, down 1/8 at 25; RJR Nabisco, down 3/8 at 54, and International Business Machines, down 1/2 at 149.

American Brands, which has been the subject lately of takeover speculation, gained 1 1/8 to 99 5/8, trading at new highs.

The daily tally on the Big Board showed nearly four issues declining in price for every three that gained ground.

Large blocks of 10,000 or more shares traded on the NYSE declined to 1,988, from Wednesday’s 2,730.

Little Movement

The renewal in buying in the bond market broke a two-day string during which bond prices and interest rates barely budged. The buying was sparked Thursday by a Labor Department report that unemployment declined last month to 7.1% from 7.3%.

Dealings in the credit markets were down to a trickle Thursday due to the early departure of traders before the long July 4 weekend. The markets closed at 1 p.m. EDT.

The price of the closely-watched 30-year Treasury bond rose about 1/2 point or $5 for each $1,000 in face amount. That cut the key bond’s yield to 7.18% from 7.23% late Wednesday.

In other secondary trading of Treasury securities, prices of short-term governments were up by 5/32 point to 7/32 point and intermediate maturities were ahead by 5/16 point to 17/32 point. The 20-year bond gained 5/8 point, according to the investment firm of Salomon Bros.

In corporate trading, industrials and utilities rose point in light dealings. Among tax-exempt municipal bonds, revenue bonds and general obligations gained 3/8 point in moderate activity.

Yields on three-month Treasury bills slid 11 basis points to 5.90%. Six-month bill yields fell 11 basis points to 5.84% and one-year bill yields were down 12 basis points, at 5.89%.

The federal funds rate, the interest on overnight loans between banks, traded at 6.813%, down from 7.25% late Wednesday.