NEW YORK, JULY 21 -- The decline on Wall Street went into a second day today as stock traders, searching for a direction, found one in the slumping bond market.
The Dow Jones average of 30 industrials fell 19.77 to 2467.95.
Declining issues outpaced advancers by a margin of about 11 to 5 on the New York Stock Exchange.
The Big Board volume totaled 186.57 million shares, compared with 168.14 million in the previous session.
The drop on the bond market gave direction to an otherwise aimless Wall Street session. The Dow Jones industrial average traded in a narrow range until midafternoon, when it dropped sharply.
A wave of computerized program selling "really greased the skids" in the last hour of trading, said Alfred Goldman, director of technical market analysis with A.G. Edwards & Sons Inc. in St. Louis.
Goldman said the continuation of Monday's decline, in which the Dow Jones industrial average fell more than 22 points, indicated Wall Street was going through a consolidation.
Many analysts have predicted the market would correct itself after the industrial average climbed 300 points in two months.
Michael Metz, a vice president with Oppenheimer & Co., said many traders were using the drop in bond prices as an excuse to take profits.
Analysts said there was little else to influence the market.
Jack Solomon, an analyst with Bear, Stearns & Co. said there was some nervousness on Wall Street as traders waited for the release of consumer price figures tomorrow, when U.S. ships also were expected to begin escorting Kuwaiti tankers past the threat of Iranian attack in the Persian Gulf.
Leading the NYSE most active list was AT&T, which fell 3/8 to 30 1/2.
Earnings reports continued to affect the performance of individual stocks. American Express rose 1 1/2 to 33 1/2 after announcing a $47.9 million loss for the second quarter. The company said the results reflected a previously announced charge to cover possible losses from loans to developing nations made by its American Express Bank subsidiary.
Citicorp, which also announced a loss tied to loan reserves, rose 3/4 to 59 3/4, and Chrysler rose 3/4 to 38 1/2 after announcing its second-quarter earnings were up 20.3 percent from a year ago, discounting extraordinary items.
Among other gainers was Santa Fe Southern Pacific, which rose 2 1/4 to 53 1/8 after Henley Group Inc. announced it would seek to increase its 5 percent stake in Santa Fe to 25 percent.
Among the losers were Xerox, which tumbled 2 1/2 to 73 1/2, Merck, which slipped 2 to 180, and IBM, which dropped 1 7/8 to 162 3/4.