The stock market resumed its slide yesterday as worries about inflation, higher interest rates and a weaker dollar once again moved to the fore of investor concerns.
The Dow Jones average of 30 industrials was down 8.58 points for the day to 830.04 on comparatively light turnover. Some 27.9 milllion shares changed hands compared with 25.5 million shares the day before.
Gamble issues - which have been drawing most of the speculative interest lately, causing the stock exchanges to resemble the casinos investors are beeting on - again were extremely active yesterday.
After steep new jumps in price, many of the issues fell back sharply in the final hour. Others, however, closed up for the day. Some analysts attributed the retreat to ordinary profit taking after the earlier multipoint gains they said were caused by short-sellers scrambling to cover their positions.
Others expressed hope that the fallback in the rasino group represented a long-awaited blow-off.
"The very frothy speculation that's been going on in casino stocks has been scaring other participants away from the market," said Newton Zinder, vice president with E.F. Hutton. "If they're now taking the wind out of the sails of these casino issues, other investors will be back."
Bernard Fortgang, a vice president in the trading department of Smith Barney, Harris Upham, said the market yesterday represented "a continuation of the recent trend - with more and more money going into fewer and fewer stocks."
He said the casino stocks "represent the only strength in the market recently" and were being bought primarily by individuals, "with large institutional investors sitting on their hands." He said the institutions might not have as much cash to plough into the market as some have suggested, and meanwhile are quite concerned about inflation and interest rates.
The Federal Reserve Board's Open Market Committee met yesterday amid widespread expectations that it would order another tightening in monetary policy, with higher interest rates as a consequence. No tightening was visible in the money markets, but short-term rates moved higher in anticipation of such a move.
The dollar meanwhile fell to a new all-time low against the Japanese yen. And the Commerce Department reported that the U.S. economy showed no real growth in the first quarter of the year.
In all, about 410 Big Board issues advanced and 1090 declined. The broader NYSE common stock index slipped 0.54 point to 54.22.
The four most active stocks on the NYSE all belonged to the so-called casino group. Ramada Inns, with a 7 percent interest in Del. E. Webb, topped the list on a volume of 1.5 million shares and was up 1 1/8 for the day to 8 5/8. Del. E. Webb was unchanged at 20 5/8, though it traded as high as 23 1/4. Bally Manufacturing was down 1 1/4 to 36 3/4. And Caesar's World was down 2 1/4 to 26 3/4 after trading as high as 30 1/4.
On the American Stock Exchange, high-flying Rersorts International Class A closed at 64 7/8, up 1 3/8 for the day. The stock's opening had been delayed and, when it started, the stock up like a bolt, trading as high as 71 3/8. The Resorts Class B stock hit a high of 77 but closed at 71, up 2 points for the day.
Also active on the Amex was Season-All Industries, which fell 1 to 11 1/2. The company said it expected a sharp decline in second-quarter earnings "approaching 50 percent."
The American Stock Exchange Index was down 1.35 points to 148.28. Losers outstripped gainers by 490 to 175. The NASDAQ index of over-the-counter stocks showed a 0.89-point decline to 122.03.