Dow Off 11.03; Markets Mixed in Late Trading

A late burst of computer-driven selling wiped out measly gains in blue chip stocks Friday and contributed to another mixed finish on Wall Street, capping a sluggish week that traders would just as soon forget.

“Nobody’s committing any money,” said Robert O’Toole, manager of over-the-counter trading at Shearson Lehman Hutton in New York. “We’re going to be in the doldrums for a while.”

The Dow Jones industrial index, up slightly through most of the day, weakened rapidly in the final minutes and ended with an 11.03-point loss to 2,016.00, putting the index’s decline for the week at 21.52.

Traders blamed the late reversal largely on computer-generated selling programs linked to expiring stock options, which contributed about 20 million shares to an otherwise dreary day on the New York Stock Exchange.

Despite the loss in the Dow, the broader market was mixed. In composite NYSE trading, gaining issues held about a 4 to 3 edge over declines, with 794 up, 624 down and 522 unchanged.

The fundamental reason for stock market apathy is concern about rising interest rates and the direction of the economy, in the opinion of many market strategists. With Treasury bonds offering increasingly attractive returns, investors aren’t eager to risk their money on Wall Street.

Tough to Compete

“If and when the market believes interest rates have peaked, then we’ll see renewed interest in stocks,” said Robert Meyer, director of research at the New York investment firm Fahnestock & Co. “When you can get fairly decent yields in short-term bonds, it’s pretty tough to compete.”

Volume on the floor of the NYSE totaled 122.37 million shares, down from 139.82 million in the previous session and the lowest level in more than three weeks. Nationwide, consolidated volume in NYSE-listed issues, including trading at regional exchanges and on the over-the-counter market, totaled 141 million shares.

Declines in some of the big-name stocks helped drag down the Dow. Du Pont fell 2 1/8 to 78 1/2; General Motors lost 2 3/4 to 72; IBM declined 1 7/8 to 112 3/4, and Minnesota Mining slipped 1/2 to 60 1/2.

Besides IBM, some other computer and technology stocks suffered big losses, notably Digital, which tumbled 2 to 92 1/2, and Compaq, down 1 1/8 to 53 5/8. In the over-the-counter market, Apple fell 1 3/4 to 40 3/4 on reports that its chairman, John Sculley, had sold nearly a third of his stake in the company.

Gains in Tokyo, London

Goodyear rose 2 to 60 after the company confirmed reports that it will sell the 1,750-mile All-American Pipeline to help pay debts. Armtek rose 1 to 46 1/2 on word that it was talking with possible acquirers.

The NYSE composite index of all listed issues fell 0.27 to 147.54.

Standard & Poor’s industrial index fell 1.46 to 298.44, and S&P;’s 500-stock composite index fell 0.79 to 260.24.

At the American Stock Exchange, the market-value index rose 0.07 to 295.03. The NASDAQ composite index for the over-the-counter market closed at 377.42, up 0.20.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,356, compared to 2,600 on Thursday.

The Wilshire index of 5,000 equities closed at 2,602.988, down 3.267.

In Tokyo, the 225-share Nikkei index ended near the day’s highs in brisk trading, up 80.06 points, or 0.28%, to close at 28,209.42.

Later in London, the Financial Times 100-stock index, which gained 3.0 points Thursday, ended the week at 1,844.3, up 10.4 points.