Stocks End Mixed in Seesaw Session : Dow Up 3.02 as Frenzied Takeover Trading Pace Subsides

The stock market finished narrowly mixed Tuesday as a feeding frenzy in takeover issues subsided.

The Dow Jones average of 30 industrials, off 13 points Monday, gained 3.02 to close at 2,173.36. The key index had seesawed within a two-point range for much of the session.

Declining issues narrowly outpaced advancers in nationwide trading of New York Stock Exchange-listed stocks. Volume on the floor of the NYSE came to 155.19 million shares, down from 170.59 million.

The market appeared steady throughout most of the session as little fresh takeover news emerged. Philip Puccio, a senior vice president at Dillon, Read & Co., noted that the market “has kind of dried up” after a recent string of multibillion-dollar takeover announcements involving companies with high-profile brand names.

Market analysts said steady bond prices as well as the government’s announcement that durable goods orders fell 4.1% in September lent support to stocks. The market was also buoyed in late trading by news of a $900-million stock buyback by Digital Equipment Corp.

But analysts said some investors kept to the sidelines before the third-quarter U.S. gross national product report due today, which should offer clues on the economy’s pace.

Takeover Issues Active

Despite a string of recent reports indicating that the economy is slowing down, many market participants expect inflation and interest rates to head higher.

“There is some possibility that the economy could be stubbornly strong and would require another dose of Federal Reserve restraint,” said Robert Robbins, market strategist at Robinson Humphrey Co.

Takeover stocks again studded the most active list. “Without takeovers, there would be little market action,” said Susan Del Signore, Travelers Management Investment trader.

Nabisco was up 1 at 85; Kraft fell 3 to 99; Pillsbury was off 1/8 at 59 1/2, and West Point-Pepperell was off 1 7/8 at 48 1/8.

Elsewhere, Rorer rose 3 3/8 to 45 3/8 amid speculation that F. Hoffman-LaRoche might launch a $60-a-share takeover bid.

Church’s Fried Chicken was up 7/8 at 8 1/8 on a $8-a-share bid from Popeyes Fried Chicken.

Stocks in Tokyo staged a last-minute rally Tuesday as world oil prices slumped and Japanese interest rates fell. The 225-share Nikkei index rose 139.95 to 27,421.49.

On the London Stock Exchange, share prices closed mixed in uneventful trading. The Financial Times 100-share index fell 0.6 to 1,847.8.