Bank Rally Not Enough To Lift Dow

The stock market succumbed to selling Monday that weighed down popular gauges despite an upbeat performance by banking issues.

News of the intended union of Chase Manhattan and Chemical Banking to form the country’s biggest bank intensified speculation about consolidation in the industry and boosted numerous financial issues.

But the buoyant banking sector had a minimal impact marketwide.

The Dow Jones industrial average ended with a deficit of 7.40 at 4,594.00 after turning lower in afternoon action.

Broader market indicators also were weighed down with the Nasdaq Stock Market suffering the steepest setback due to a slump in technology shares. Nasdaq’s composite index skidded 11.82 to 1,008.16.

Some of the stocks that moved substantially or traded heavily:

NYSE

Chase, up 6-5/8 to 59-5/8 in NYSE-leading volume of more than 7.9 million shares.

Investors snapped up the stock following news that Chemical Banking and Chase Manhattan agreed to merge in a $10 billion stock transaction that will create the biggest banking company in the United States. Chemical rose 5-5/8 to 60 and was the second most heavily trading NYSE stock.

Integra Financial, up 5-1/2 to 57-3/8.

The stock jumped in response to news that Integra has agreed to be acquired by National City in a stock swap valued at $2.1 billion. National City fell 1-1/8 to 30-1/2.

Citicorp, up 7/8 to 66-1/2.

Citicorp, which will be unseated from atop the roster of U.S. banks if the Chase-Chemical merger is completed, was among numerous banking traded actively amid speculation about continuing consolidation in the industry.

NASDAQ

Microsoft, down 4-5/16 to 90-1/16.

Investors focused on the stock as several published reports highlighted complaints from users of Microsoft’s new Windows 95 operating system and its Microsoft Network.

Intel, down 1-3/4 to 58-5/8.

Stock of the semiconductor industry bellwether slumped, leading a broad selloff in technology issues.

SFFed Corp., up 3-5/8 to 29-7/8.

The parent of San Francisco Federal Savings and Loan Association will be bought by First Nationwide Bank for $32 a share.

AMEX

Medicore, up 1 to 5-5/8.

The company was featured in the Oberweis Asset Management weekly investment advisory letter.