Late Jitters Lower Dow 12.80 Points

Stocks ended lower Monday after a sell-off in bonds caused the market to reverse course in late trading.

Investor enthusiasm over good quarterly results from several prominent companies was undercut by the bond market setback.

Computer-guided sell programs exaggerated the downtrend and dragged the Dow Jones industrial average lower in the final hour of the session. The blue-chip indicator fell 12.80 to 4,195.38. Broader stock measures also lost ground.

Advancing and declining stocks finished in a virtual tie on the Big Board; a closing tally showed 1,114 issues up, 1,113 down and 757 unchanged.

Volume on the NYSE floor came to 333.93 million shares as of 4 p.m. Eastern time compared with 301.51 million Thursday.

“The stock market reacted to the bond market’s sell-off,” said Robert Walberg, an analyst at MMS International. “Strength in oil and gold prices combined with weakness in the dollar spooked the bond market.”

Some of the stocks that moved substantially or traded heavily:

NYSE

Chase Manhattan, up 5/8 to 42 5/8.

The bank’s first-quarter earnings, while lower than a year earlier, weren’t as poor as analysts expected. Chase earned $1.29 a share vs. $1.80 a share the year before. Strength in Chase stock boosted other banking issues. Citicorp rose 1 1/8 to 47 3/8.

Chrysler, up 1/8 to 48.

The automaker’s stock has remained in the spotlight since an investor group led by Kirk Kerkorian announced an offer to buy Chrysler for $55 a share.

U.S. Shoe, up 1 to 27 1/2.

A deal was announced Sunday in which Italian eyewear maker Luxottica Group SpA will buy U.S. Shoe Corp. for $28 a share or about $1.4 billion.

Time Warner, up 1/4 to 36 5/8.

Time Warner has agreed to sell control of its Six Flags theme park business to an investment group which will pay $200 million in cash and assume $800 million in debt.

NASDAQ

Microsoft, up 4 7/8 to 77 3/8 in Nasdaqleading volume of more than 11.7 million shares.

The software maker’s third-quarter income rose to 63 cents a share from 55 cents a year earlier, which beat analysts’ estimates.

Intel, down 1 to 94.

The computer chip maker’s firstquarter results drew an unenthusiastic response from investors.

AMEX

ThermoLase, up 9 3/4 to 23.

The company received clearance from the Food and Drug Administration to market its hair removal system.