NEW YORK, JAN. 26 -- A slumping bond market and profit-taking sent stock prices lower today.

The Dow Jones average of 30 industrial stocks closed at 1920.59, down 25.86 points.

Decliners outpaced advancers by a ratio of about 8 to 5 among NYSE-listed stocks.

Volume on the Big Board stood at 138.38 million shares, down sharply from 275.25 million shares Monday.

"The bond market was just weak here, and that's going to be a factor on the stock market," said Thomas Czech, research director at the Blunt Ellis & Loewi securities firm in Milwaukee.

Analysts said an important reason for the 67.14-point rise in the previous two sessions was a bond market rally that sent interest rates so low that many investors found stocks more attractive -- and switched.

But the rally in bonds went into reverse today after the government announced that durable goods orders jumped 6.7 percent in December, compared with a 0.1 percent increase in November.

Analysts said the increase, which reflected a sign of strength in the economy, was much higher than expected. It gave bond traders less reason to hope the Federal Reserve Board might lower interest rates, and therefore led to a selloff on the bond market.

As bond prices fell interest rates rose, putting downward pressure on stocks, they said.

Several also said the stock market was ripe for a decline anyway. "We had a nice move in the last couple of days, so we're entitled to some kind of pullback," said Rodd Anderson a trader at Shearson Lehman Bros. Inc. "I wouldn't read a real lot into this."

On Monday, the Dow industrials jumped 42.94 points, capping a rally that was also driven by takeover news and strategies related to looming dividend payments. Those factors continued to affect some trading today.

Security Pacific Corp., due to pay its dividend soon, led the Big Board's most-active list, unchanged at 30 7/8.

Among takeover-related issues, Federated Department Stores closed up 1 5/8 at 50 5/8. On Monday, Canadian developer Campeau Corp. bid $4.2 billion for the company. Traders apparently expected higher bids to come.

Eastman Kodak, was down 1 1/2 at 43 3/8. Last week, Kodak offered $89.50 per share for Sterling Drug -- an amount many analysts said was too high. Sterling closed unchanged at 87 3/4.

Other active issues included Allegis, down 2 at 69 5/8, after a report that it might be reconsidering a promised $50-per-share distribution.

IBM lost 1 1/8, to 111 7/8, while Digital Equipment was down 2 at 122 3/8. Honeywell was up 1 at 58 1/4.

Merck dropped 5 1/8 to 148 1/4.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, was 159.27 million shares. The NYSE index was down 1.25, at 140.26. Standard & Poor's index of 400 industrials fell 3.26 to 285.92, and S&P's 500-stock composite index was down 2.60 at 249.57.

At the American Stock Exchange, the market value index fell 1.28 to 265.77. The Nasdaq composite index for the over-the-counter market closed at 339.22, down 1.29.

The Wilshire Associates 5,000 Equity Index, reflecting the market value of 5,000 NYSE, American and over-the-counter issues, closed at $2.45 trillion, down $19.795 million, or 0.8 percent, from Monday.