NEW YORK, OCT. 23 -- The stock market turned in a mixed performance for the second day running today as the Dow Jones industrial average slid 22 points while broad indexes of secondary stocks held firm.
Analysts suggested that the market, still in the process of recovering from the volatile swings of the past two weeks, was buffeted by numerous crosscurrents today, further confusing efforts to determine a trend.
Doubt about the prospects for a resolution of the federal budget stalemate helped depress the bond market, where the long Treasury bond closed down 11/32. But news from the Middle East continued to give traders a sense that the danger of war was receding. The price of oil continued to decline, by more than $1 a barrel in New York trading.
Third-quarter earnings reports, meanwhile, continued to give some analysts reason to believe the market's bottom had been reached.
Paul Hennessey at the Boston Co. said, "There have been no serious earnings disappointments. Many reports are coming in a couple of pennies below expectations, but it hasn't been enough to kill any of the stocks involved.
"My guess is that because the Dow was up over 100 points last week and down over 100 the week before, it has to 'catch its breath' for a while. Then it can probably move a little higher," he said.
At the close, the Dow stood at 2494.06, down 22.03, although advances led declines on the Big Board most of the day, and finished ahead by a ratio of about 8 to 7. New York Stock Exchange volume was moderate at 146 million shares.
Among high-technology companies, Control Data gained 3/8 to 9 1/2 despite reporting that third-quarter net was down 14 percent. Analysts had expected a slight increase. Amdahl eased 1/4 to 11 5/8, however, after reporting higher profits in line with expectations. And Tandy's earnings, which were expected to advance, dropped 9 percent, sending the stock down 1 1/4 to 24 3/4.
In the brokerage industry, Morgan Stanley gained 1/2 to 52 despite its report of net income at $1.82 per share, compared with $2.54 a year earlier. Results were lower than the mean expectation of $1.90 per share and were toward the low end of the estimate range.
But Salomon Brothers lost 1 1/2 to 23 7/8 after reporting net at 55 cents per share, compared with $1.28 a year earlier. Results were below most estimates, according to the latest survey of analysts.
Among other stocks in the news, Disney edged 5/8 higher, trimming an increase of more than 2 points tied to the company's confirmation of reports that it would obtain $600 million from a group of Japanese clients, including Yamaichi Securities, in a new partnership to produce motion pictures.
Citicorp eased 3/8 to 12 5/8 a day after it was forced to reprice an issue of money-market preferred stock because of investor nervousness.
C&S/Sovran dropped more than 12 percent after analysts met with company executives and at least one brokerage, PaineWebber, downgraded its rating on the stock. C&S shares ended a day of heavy trading at 16 1/2, down 2 3/8.
Midway Airlines plunged 1 1/2 to 5 3/8 after the troubled carrier suspended dividend payments on its preferred stock.
The Dow transportation average fell 8.7 to 875, while the utilities eased 0.94 to 209.95.
Broad stock indexes generally outperformed the Dow, albeit not by as much as on Monday. The Standard & Poor's 500 was down 2.40 at 312.36, the NYSE Composite down 1.02 at 170.50, the Value Line up 0.15 at 223.31, the Amex Market Value up 0.74 at 292.97 and the Nasdaq Composite down 0.03 at 341.09.