Bad News Gets Dow Down; It Slips 13.36

Stock prices slipped today as the market digested a spate of bad news and marked time ahead of Wednesday’s diplomatic meeting on the Iraqi standoff.

The Dow Jones average of 30 industrials was off 13.36 points at 2,509.41. On Monday, the 30-share index lost 43.32 points.

In the broader market, declining stocks led advancers by a 9-5 margin. Volume on the New York Stock Exchange was a moderate 143.39 million shares.

Before the market opened, Pan Am announced it filed for Chapter 11 bankruptcy protection, increasing concern about the troubled airline industry.

Analysts said the market also was troubled by the Pentagon’s surprise cancellation late Monday of the $52 billion A-12 attack plane program. The news hurt the stock price of the project’s two contractors, McDonnell Douglas and General Dynamics.

Also weighing on the minds of investors was a drop in stock prices in London and Tokyo.

Though the gloomy developments set a negative tone for the market, traders said the overall mood continued to be governed by uncertainty over the Persian Gulf situation before Wednesday’s scheduled meeting between Secretary of State James A. Baker III and Iraq’s foreign minister.

“I don’t think people are holding out much hope, but maybe something postive will develop,” said Ron Doran, director of institutional trading at C.L. King and Associates.

“You’ve got this big cloud overhanging,” said Danny Williams, head position trader for the investment firm Dillon, Read & Co. “No one’s willing to step in and make any commitments anywhere.”

Because of that, trading was weak and listless, he said.