Dow Ends Off 10 After Brief Run at 1,300 Level

NEW YORK —  The stock market turned downward in late trading Thursday after making a short-lived run past the 1,300 level in the Dow Jones industrial average for the second straight session.

Computer and technology issues, which have been under pressure since early in the week, recorded some of the day’s most notable losses.

The Dow Jones average of 30 industrials, up more than 5 points early in the day to about 1,303, wound up with a 10.04-point loss at 1,287.88.

Volume on the New York Stock Exchange came to 139.73 million shares, against 142.46 million Wednesday.

Analysts said enthusiasm remained high about the economic outlook and the stock market’s rousing start on 1985. However, they said it was evident that some traders were using the 1,300 mark in the Dow as a cue to cash in some profits.

Psychological Obstacle

Some market watchers say that round-number figure is less significant than it may appear, since other measures of market trends have regularly been setting new highs of late. Still, it seemed to stand as a psychological obstacle that the market was having some trouble overcoming.

Another source of caution in Thursday’s activity was the Federal Reserve’s weekly report on the money supply, due out after the close in New York. The Fed reported a $1.4-billion increase in the basic measure of the money supply for the week ended Feb. 4, which seemed to cause no great stir in the credit markets.

Technology issues continued the rocky ride that began two days earlier, when Data General said its earnings for the quarter ending March 31 would come in sharply below expectations.

Data General shares, down more than 16 points Tuesday and Wednesday, recovered 1 1/8 to 57 7/8. But Digital Equipment fell 6 to 110 5/8. Some financial-services stocks also were weak. Merrill Lynch gave up 1 to 35, Phibro-Salomon fell 2 3/8 to 38 3/4, Paine Webber fell 1 5/8 to 40 3/8 and E. F. Hutton fell 7/8 to 40.

Bond Prices Higher

Bond prices moved higher and short-term interest rates were slightly lower.

In the secondary market for Treasury bonds, prices of short-term governments were up between 1/8 point and point, intermediate maturities rose between 3/8 point and 1/2 point and long-term issues were up 5/8 point.

In corporate trading, industrials and utilities rose 3/8 point.

Among tax-exempt municipal bonds, general obligations were unchanged and revenue bonds were up point.

Yields on three-month Treasury bills fell 5 basis points at 8.16%. Six-month bills rose 1 basis point to 8.28% and one-year bills were off 7 basis points at 8.41%.

Yields on 30-year Treasury bonds fell to 11.22% from 11.29% late Wednesday.

The federal funds rate, the interest on overnight loans between banks, traded at 8.5%, down from 8.675% late Wednesday.