Dow Drops 6.76 to End 5-Day Winning Streak

NEW YORK â€”  The stock market was mixed Thursday in the face of some selling that ended a five-session winning streak for the Dow Jones industrial average.

Property and casualty insurance stocks recorded some of the most notable losses.

The Dow Jones average of 30 industrials, up more than 5 points in early trading, was off 6.76 at 1,552.18 by the close. The average’s record closing peak of 1,565.71 was reached Jan. 7.

Volume on the New York Stock Exchange slowed to 125.34 million shares from Wednesday’s 18-month high of 193.80 million.

Economic Report

Before the market opened, the Commerce Department reported that the index of leading economic indicators rose 0.9% in December.

The increase in the index, which is designed to detect future economic trends, provided new evidence that growth of business activity remained on track.

At the same time, the figure came in below most advance estimates on Wall Street. Therefore, it was interpreted in some quarters as a favorable portent for the Federal Reserve’s credit policy and interest rates.

Despite those positive influences, however, brokers said the market was meeting with resistance from selling by traders looking to cash in on the advance that had carried the Dow Jones industrial average up more than 56 points since the middle of last week.

In the property/casualty and multiline insurance group, Cigna fell 4 1/2 to 65 3/8. The company said it would take a $1.2-billion charge against its fourth-quarter earnings as a result of an addition to its property/casualty reserves.

Among other insurance stocks, Travelers fell 1 to 48 1/2, American International Group 2 to 115 1/2 and Torchmark 1 3/8 to 21. Torchmark, which is primarily a life and health insurer, reported lower operating earnings for the fourth quarter.

Xerox Gains

Elsewhere, International Business Machines lost 1 1/2 to 149 1/2. The Wall Street Journal reported that a prominent technology research firm expects the company to cut personal computer prices sharply this year.

On the plus side, Xerox gained 1 to 62 5/8. The company reported a fourth-quarter profit, against a loss in the comparable period a year earlier, and said it expected “solid results in 1986 and beyond.�

Sara Lee Corp., which reported plans to buy back as many as 2 million of its common shares, rose 2 to 52 3/8.

In the overall tally on the Big Board, about six issues advanced in price for every five that lost ground.

Large blocks of 10,000 or more shares traded on the NYSE totaled 2,289, compared to 3,572 on Wednesday.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 148.83 million shares.

Standard & Poor’s index of 400 industrials fell 0.82 to 230.48, and S&P;’s 500-stock composite index was down 0.96 at 209.33.

Interest Rates Fall

In the bond market, government bond prices gained modestly and interest rates fell slightly in quiet trading. Prices of corporate and municipal issues declined.

The government securities market was aided early in the session by the Commerce Department’s leading indicators report.

In another report, the department said the U.S. trade deficit hit $148.5 billion last year, exceeding the previous peak of $123.3 billion reached in 1984. In December alone, the deficit swelled to $17.4 billion--a monthly high.

Analysts said the reports suggested that the economy, particularly the manufacturing sector, continues to grow at a fairly sluggish pace, a condition that could persuade the Federal Reserve Board that the economy still needs help.

The credit markets showed little reaction to the Fed’s weekly report on the money supply.

In the secondary market for Treasury bonds, prices of short-term governments rose 1/16 point to 1/8 point, intermediate maturities went up 5/32 point and long-term issues rose 1/16 point, according to the investment firm of Salomon Bros.