Dow Nears 3,000 Mark as It Falls 11.40 : Market Overview

* A week after surging to new highs, the Dow average was driven closer to the psychological 3,000 barrier Friday by uncertainties about the economy and weak corporate profits.

* The Dow Jones average of 30 industrials dropped 11.40 points to 3,004.92, extending its loss for the week to 72.23 points.

* Bond prices sagged in light trading, with traders saying the Treasury market’s outlook was darkened by upcoming bond auctions and the prospects of a federal tax cut. The yield on the key 30-year bond rose to 8.04%, up from 8.03% late Thursday.

Stocks

The Dow average had climbed 93.47 points to a record high of 3,077.15 the week before.

Declining issues outnumbered gainers by about 7 to 5 on the New York Stock Exchange.

Big Board volume slipped back to 167.10 million shares from Thursday’s 179.04 million.

The softening in bond prices after Thursday’s advance buttressed the negative tone in the stock market, analysts said.

Economic data this week, including a steeper-than-expected 3.2% drop in durable goods orders for September, confirmed a tepid economic rebound.

But Washington’s solutions for reviving growth were viewed by the stock market as inflationary. Over the past week, proposals on a tax cut for the middle class and a capital gains tax cut have been suggested.

President Bush said the nation’s economy remains sluggish but he would not support a tax cut if it violates the budget agreement with Congress.

Among the market highlights:

* American Express fell 1 1/2 to 19 1/8 after it reported third-quarter results late Thursday that were worse than it had previously indicated.

* Compaq Computer fell 2 3/4 to 30 1/4 after its board ousted co-founder and President Rod Canion.

* Glaxo Holdings gained 2 to 51 1/4 after U.S. regulators said its migraine drug was found to be safe and effective.

* Delta Airlines fell 4 1/8 to 61 after the company said operations being acquired from Pan Am are expected to bring an operating loss of more than $100 million in its fiscal second quarter.

* Total SA, in an initial public offering of the French energy company, topped the NYSE actives list with more than 7.7 million shares traded. It was unchanged at 21 1/8.

* Applied Biosystems gained 1 3/8 to 14. Alex. Brown raised its 1992 estimate after a better-than-expected first quarter.

The NASDAQ over-the-counter index was down 3.62 to 525.13.

Overseas, share prices finished lower on the London Stock Exchange. The broad-based Financial Times 100-share index fell 13.6 points, or 0.5%, to close at 2,514.7.

In Frankfurt, the 30-share DAX average fell 6.98 points to 1,572.03.

Tokyo stocks wound down a sluggish session to close barely changed. The 225-share Nikkei average was down 42.83 points, or 0.17%, to 24,906.43.

Currency

The dollar was mixed and trading was thin as dealers awaited the release of fresh economic data due out next week.

The dollar rose in New York to 1.700 German marks, unchanged from Thursday, and to 131.45 Japanese yen compared to 131.15 yen.

Credit

The price of the bellwether 30-year bond, which moves inversely to the yield, fell 3/16 point, or $1.88 per $1,000 in face amount.

Many bond analysts believe that new auctions will create an oversupply and depress bond prices. Next week, the Treasury Department is expected to announce that it will auction about $39.5 billion in new Treasury securities to finance the federal deficit.

That comes after auctions totaling $43.7 billion in new Treasury securities this week.

The federal funds rate, the interest on overnight loans between banks, was quoted at 5.188%, unchanged from late Thursday.

Commodities

Grain and soybean futures prices sank amid disappointment over the lack of new U.S. food aid to the Soviet Union and reports that Soviet economic and political strife are nearing crisis levels.

On other commodity markets, crude oil fell sharply, precious metals were lower and livestock and meat futures were mixed.

Soybeans sagged to a two-month low on the Chicago Board of Trade. The contract for November delivery dropped 7 cents to $5.413 a bushel, the lowest settlement of a near-term contract since Aug. 20.

Light, sweet crude oil for delivery in December settled at $23.12 per barrel, down 37 cents, at the New York Mercantile Exchange.

Precious metals retreated on New York’s Commodity Exchange as falling oil prices diminished inflation fears. December gold fell $1.30 to $362.30 an ounce; December silver slipped 2.8 cents to $4.105.