NEW YORK — Stock prices posted some uneven losses in a busy and volatile session Monday as the market tracked wide swings in interest rates.
The Dow Jones index of 30 industrials, down about 40 points at noon and up more than 11 at its afternoon highs, closed with a 4.83 decline at 2,230.54.
Volume on the New York Stock Exchange reached 222.71 million, up from 177.96 million Friday.
In the credit markets, bond prices bounced higher, after falling in early activity, on what analysts said was a reaction to a slight strengthening in the dollar at midday.
The Treasury's key 30-year issue, down 7/8 point at midday, closed up 23/32 point, or about $7.50 per $1,000 in face value. It had shown losses of more than $10 for every $1,000 in face value early in the session. Its yield dipped to 8.62% from Friday's 8.67%.
A "blue Monday" mood was set at the opening by continuing declines in the dollar and news of a record drop in the Japanese stock market.
Among other things, the dollar's dive has prompted increased inflation worries, which have sent both interest rates and precious metals prices higher.
But all the markets turned around at midday following a White House statement reiterating a Reagan Administration view that further declines in the dollar might be "counterproductive."
Precious metals issues, which also started out strong, took a trouncing. ASA Ltd. dropped 4 to 63 3/8, Hecla Mining fell 3 to 21 5/8, Callahan Mining retreated 4 to 35, Freeport McMoRan Gold dropped 1 to 18 3/8, Homestake Mining fell 2 5/8 to 35 and Sunshine Mining dipped 5/8 to 8.
Leading the rally in blue chips was International Business Machines, up 2 1/2 at 154. Chairman John F. Akers said at the annual meeting Monday that the company had lately seen some encouraging signs for its outlook.
Losers outnumbered gainers by more than two to one in the overall tally on the NYSE, with 550 up, 1,079 down and 300 unchanged. Earlier, the spread had been as much as seven to one.
In the secondary market for Treasury bonds, prices of short-term governments were mixed, down 3/32 point on two-year issues and up 3/32 point on three-year bonds. Intermediate maturities rose between 3/32 point and 9/16 point and 20-year issues were up about a point, according to Salomon Bros.
In corporate trading, industrials and utilities both were up point, according to Salomon Bros.
Among tax-exempt municipal bonds, general obligations were up 1/2 point in light trading and revenue bonds were up 5/8 point.
Yields on three-month Treasury bills were up 9 basis points to 5.87%. Six-month bills rose 8 basis points to 6.07% and one-year bills were up 3 basis points at 6.42%.
The federal funds rate, the interest on overnight loans between banks, traded at 6.625%, up from 6.25% on Friday.