STOCKS : Dow Declines 3.20 Points in Listless Trading

Stock prices fell in featureless trading Monday amid investor uncertainty about the economy and interest rates.

The Dow Jones index of 30 industrials fell 3.20 points to 2,728.24 after gaining 10.66 points in Friday’s session.

Declining issues outpaced advances by a 5-to-4 margin in nationwide trading of New York Stock Exchange-listed stocks, with 844 issues down, 669 up and 477 unchanged. Traders said high-technology stocks led the losers after two brokerages lowered the investment ratings of Compaq and Apple computer companies.

Wall Street analysts attributed the market’s overall weakness to investor uncertainty about the prospects for the economy and to profit taking after Friday’s modest rally.

Big Board volume came to 147.13 million shares, up from 144.91 million in Friday’s session.

Among actively traded issues on the NYSE, Pinnacle West, the most active stock, fell 5/8 to 10 3/8; Compaq Computer dropped 4 1/4 to 81 5/8 after First Boston Corp. downgraded the stock’s investment rating; IBM lost 3/4 to 96 1/8, and Pfizer tumbled 1 1/2 to 67 5/8.

Apple Computer, the most active stock on the over-the-counter list, dropped 2 1/2 to 39 1/4 after Goldman, Sachs & Co. lowered its investment rating and earnings estimate for the company.

On the plus side, Federal National Mortgage rose 3/4 to 35 3/8, Philip Morris gained 1/4 to 42 3/8 and WYSE Technology advanced 5/8 to 9 3/4.

The Tokyo stock market fluctuated for most of the day but closed firm in mixed, moderate trading. The 225-share Nikkei rose 28.61 points to close at 37,752.67.

Prices closed lower in lackluster trading on London’s Stock Exchange, as the market shadowed Wall Street’s movements. The Financial Times 100-stock index fell 12.1 points to 2,351.4 points.

CREDIT

Bond Prices Dip in Absence of News

Bond prices fell slightly in light trading in the absence of major economic news.

The Treasury’s benchmark 30-year bond fell 1/16 point, or under $1 per $1,000 face amount. Its yield was unchanged from late Friday at 7.88%.

Bond prices were pressured downward by a rise in oil and gold prices and a decline in the dollar, said Greg Jones, an economist and market analyst for MMS International in New York.

The federal funds rate, the interest on overnight loans between banks, was quoted at 8.438%, unchanged from late Friday.

CURRENCY

Changes in Germany Benefit the Mark

The dollar ended mostly lower against key foreign currencies in light trading.

Currency dealers said firm interest rates in West Germany, political reforms in East Germany and speculation of further interest rate increases were supporting the mark at the dollar’s expense.

Also depressing the U.S. currency were reports that the Federal Reserve sold dollars for yen as part of an effort to improve the trade imbalance.

In Tokyo, where trading ends before Europe’s business day begins, the dollar rose 0.38 Japanese yen to close at 144.65 yen. It traded at 144.47 yen in London, and at 144.375 yen in New York, up from 144.30 yen Friday.

The dollar was weaker against the British pound, with sterling buying $1.5895 in London, up from $1.5793 late Friday. The pound fetched $1.5937 in New York, up from $1.5825.

COMMODITIES

Gold Prices Surge Near High for Year

Gold futures prices rose to within a few dollars of new 1989 highs on New York’s Commodity Exchange as the market extended its recovery for a fifth day from a steep post-Thanksgiving decline.

On other commodity markets, orange juice futures rose sharply on Florida freeze fears; cotton futures rebounded; energy futures gained; pork futures fell; cattle futures rose, and grains and soybeans were mixed.

Gold futures settled $4.90 to $5.50 higher, with the contract for delivery in December up $5 at $416.80 an ounce.

The December contract reached an intra-day high of $418 an ounce, just $1.70 below the 1989 high of $419.70 reached Nov. 24.

Silver futures finished 4.5 to 4.9 cents higher, with December at $5.692 an ounce.

Frozen concentrated orange juice settled 2.45 to 3.75 cents higher, with January at $1.313 cents a pound.

Cotton futures also climbed sharply in a move that analysts viewed as a technical correction after several sessions in which prices fell.

Cotton settled 0.60 to 1.73 cent higher, with March at 67.91 cents a pound.

Heating oil continued to lead energy prices higher on the New York Mercantile Exchange as extremely cold temperatures in Europe spurred demand for fuel oil on the world market.

West Texas Intermediate crude oil settled 15 to 23 cents higher, with January at $20.70 a barrel; heating oil was 0.15 cent lower to 0.58 cent higher, with January at 66.95 cents a gallon, and unleaded gasoline was 0.11 to 0.40 cent lower, with January at 52.40 cents a gallon.

Frozen pork bellies dropped the 2-cents-a-pound daily limit for the third-straight day.