Stocks Dip in Quiet Trading; Dow Slips 2.29

The stock market posted a small loss in quiet trading Thursday, adding a bit more to the steep declines of the two previous sessions.

Analysts said traders were proceeding cautiously awaiting today’s quarterly “triple-witching hour.”

The Dow Jones average of 30 industrials slipped 2.29 to 2,527.90, bringing its loss since Monday’s close to 85.14.

Volume on the New York Stock Exchange totaled 150.71 million shares, down from 195.74 million Wednesday.

The Treasury’s 30-year bond rose 1 1/8 points, or about $11.25 for every $1,000 in face value. Its yield dropped to 9.57% from 9.67% Wednesday.

Analysts said spotty declines in interest rates helped lend the market some support.

But they also said traders were leery of committing themselves before today’s triple-witching hour involving a group of expiring stock index futures, stock index options and options on individual stocks.

Program trading maneuvers by professionals using these contracts and the stocks that make up the indexes has been cited as a primary force behind the market’s drop this week.

Citicorp Most Active

Brockway Inc. jumped 19 1/8 to 58 3/8, pacing the percentage gain leaders among Big Board issues on word that Owens-Illinois was negotiating a deal to acquire the company for $60 a share.

Teledyne, which has a large chunk of Brockway stock, climbed 11 3/4 to 369 1/2.

Citicorp led the active list, down 3/4 at 57 1/2 on turnover of more than 5 million shares. The company sold 20 million new shares at 58.

Federal Express gained 3 3/4 to 69. The company reported a slight decline in earnings from continuing operations for its latest fiscal quarter, but the results were better than some analysts’ estimates.

Nynex rose 1 3/8 to 75. The company reported plans to buy back as much as 5% of its stock.

Home Shopping Network, traded on the American Stock Exchange, fell 7/8 to 14 1/8. Home Shopping said it plans to reorganize itself as a holding company.

Declining issues outnumbered advances by about 6 to 5 in the overall tally on the NYSE. The exchange’s composite index dipped 0.03 to 176.48.

Meanwhile, in the secondary market for Treasury bonds, prices of short-term government issues were 1/8 point to point higher; intermediate maturities were 9/32 point to 11/16 point higher, and 20-year issues were up 13/16, according to Salomon Bros.

Among tax-exempt municipal bonds, general obligations rose 3/8 point and revenue bonds were up point in light activity, according to Salomon Bros.

Yields on three-month Treasury bills rose 2 basis points to 6.35%. Six-month bills were unchanged at 6.63%, but one-year bills fell 2 basis points to 7.06%.

The federal funds rate, the interest on overnight loans between banks, was quoted at 7.63%, unchanged from late Wednesday.