Dow Slumps 13.07 in Broad Market Retreat

Stock prices suffered broad losses Monday, recovering from an initial setback attributed to the insider trading scandal involving Ivan F. Boesky, then slipping amid lack of buying interest toward the close, analysts said.

The Dow Jones average of 30 industrials lost 13.07 points to close at 1,860.52.

Losers outpaced gainers by almost two to one on the New York Stock Exchange, with 1,029 stocks declining, 538 stocks advancing and 417 remaining unchanged.

Volume totaled 133.25 million shares, compared to 172.06 million on Friday.

The session was affected by overnight trading in Europe, where U.S. stocks fell in reaction to Friday’s post-closing announcement by the Securities and Exchange Commission that Boesky, one of the market’s best-known arbitrageurs, had agreed to pay $100 million to settle SEC charges of insider trading.

Prices recovered to post small gains by early afternoon, however, only to plunge again toward the close.

Lack of Buying

“It was more of a lack of buying than a selling panic,” said Brian Luedtke, an analyst at the securities firm of Piper, Jaffray & Hopwood in Minneapolis. “There was just a general lack of buying conviction.”

“Merger stocks came under particular pressure,” said John Dodd, an analyst at E. F. Hutton. “A lot of issues had had a good rally from September through last week to an overbought situation.”

Among most active issues on the Big Board, Lockheed closed down 2 7/8 at 52 3/8. Last Thursday and Friday, the stock had gained 10 1/2 amid rumors that it might be a takeover candidate. On Monday, Lockheed issued a statement saying it was unaware of any reason for its stock’s recent activity.

Gillette was down 1/2 at 67, Bally Manufacturing was up 1 1/2 at 22 1/8, USX Corp. was off by 2 1/8 at 21, E. F. Hutton fell by 2 1/8 to 42 and Borg Warner was down 2 7/8 at 39 7/8.

All have been involved in takeover activity or speculation.

Among other issues, IBM was up 5/8 at 122, CPC International was down 2 7/8 at 73 5/8 and Eastman Kodak was down 1 at 65 1/2.

Bond Prices Climb

Bond prices strengthened, buoyed by weakening precious metals, rising U.S. Treasury futures and further speculation that the Federal Reserve Board wasn’t likely to tighten credit in the near future.

The bellwether 30-year Treasury bond rose more than $5 per each $1,000 in face value. Its yield dipped to 7.48% from 7.52% on Friday.

In the secondary market for Treasury bonds, prices of short-term governments were up about 2/16 point, intermediate maturities were up in the range of 3/16 to 13/32 point and long-term issues were up as much as 1 1/8 point.

Among tax-exempt municipal bonds, general obligations rose 3/8 point and revenue bonds were up 1/2 point in moderate trading.

Yields on three-month Treasury bills were unchanged at 5.39%, while six-month bills rose 1 basis point to 5.44%. One-year bills were off 3 basis points at 5.47%. A basis point is one-hundredth of a percentage point.