Dow Slips 5.69; Profit Taking Smothers Rally : Stocks Mixed as 6-Day Winning Streak Snaps

NEW YORK — The stock market pulled back a bit Wednesday, meeting with more resistance from profit takers after Tuesday’s mixed session.

The Dow Jones index of 30 industrials, which had closed at record highs in each of the six previous sessions, slipped back 5.69 to 2,363.49.

Volume on the New York Stock Exchange came to 171.34 million shares, down from 189.85 million in the previous session.

Analysts said several seasonal forces continued to work in the market’s favor.

For one thing, they said, money managers at investing institutions appeared still to be doing some last-minute buying as they prepared their portfolios for first-quarter reports to clients.

Strong Temptation

For another, equity mutual funds are presumed to be receiving a steady stream of new money from investors making individual retirement account contributions for 1986 before the April 15 deadline.

But brokers said many traders looking past those temporary influences found the temptation strong to cash in some of their gains after the market’s runaway rise since the start of the year.

Shares in Allegis, formally UAL Inc., rose 2 1/2 at 62 1/2 in heavy trading amid speculation that New York real estate developer Donald Trump might seek to acquire control of the company.

International Business Machines bucked the trend in Wednesday’s session, climbing 2 3/4 to 155 5/8. Among other blue chips, General Electric dropped 7/8 to 110 1/8, Minnesota Mining & Manufacturing fell 1 1/8 to 131 3/4 and Eastman Kodak slipped 5/8 to 79.

Declining issues outnumbered advances by about five to four on the NYSE, with 689 up, 854 down and 409 unchanged.

Large blocks of 10,000 or more shares traded on the NYSE totaled 3,413, compared to Tuesday’s 3,559.

In the bond market, the bellwether 30-year Treasury issue fell 3/32 point while its yield was 7.57%, unchanged from Tuesday.

The average yield on the four-year notes was 6.79%, up from 6.64% at the last auction on Dec. 18 and the highest yield since September.

In Tuesday’s auction, yields on $10.03 billion in two-year notes rose to 6.43%--the highest level in six months--from 6.32% at the last auction on Feb. 24.

Industrials Unchanged

In the secondary market for Treasury bonds, prices of short-term government securities were down in the range of 1/16 point to 5/32 point, intermediate government securities were down about 3/32 point and 20-year issues were off by 3/32 point, according to the investment firm Salomon Bros.

In corporate trading, industrials and utilities were unchanged in light to moderate trading, Salomon Bros. said.

Among tax-exempt municipal bonds, general obligations were up 1/8 point and revenue bonds rose up to point in light to moderate trading.

Yields on three-month Treasury bills were 5.57%, down 1 basis point, six-month bills were unchanged at 5.58% and one-year bills rose 3 basis points to 5.73%, Salomon Bros. said.

The federal funds rate, the interest on overnight loans between banks, was quoted at 6.125%, unchanged from Tuesday.