Stocks Surrender Early Gains; Dow Dips 4.34

Stocks ended Wednesday’s session mixed, after the Dow Jones industrials reversed early gains tied to new data confirming a slowing economy.

The Dow average closed down 4.34 at 5,105.92, after relinquishing a gain of 16 points posted early in the session. Trading was very quiet, as many investors were still absent following the Christmas holiday on Monday.

Advancing issues edged out decliners by about 6 to 5 on the New York Stock Exchange. Big Board volume was thin at 252.28 million shares, although up from Tuesday’s anemic, post-holiday pace.

Broad market indexes were mixed, following a retreat in computer-related stocks. But biotechnology stocks performed well.

Analysts and traders attached little significance to the market’s behavior Wednesday because of the thin volume. At the market’s currently lofty levels, it takes a big move to get anybody excited, said Tony Spare, chairman of Kaplan, Bischel & Associates in San Francisco.

“Unless it moves 1 percent, I don’t even pay attention,” he said, “and I really don’t focus unless it’s 2 percent.”

Some of the stocks that moved substantially Wednesday:

NYSE

Federal National Mortgage Association rose 5-1/4 to 125.

The Washington, D.C., mortgage packager announced a capital restructuring program that includes a 4-for-1 common stock split.

Deluxe Corp. rose 1-1/4 to 29-1/4.

The St. Paul, Minn., check-printing company said it will record a $60 million to $70 million fourth-quarter charge for facility closings and other asset write-downs and write-offs, reducing 1995 net income by 42 cents to 50 cents a share.

NASDAQ

Cordis Corp. fell 11-1/4 to 95-1/4.

Johnson & Johnson said it extended the period during which it can terminate its agreement to merge with Cordis.

Structural Dynamics fell 1-55/64 to 28.

Prudential downgraded the stock to “hold” from “buy.”

Encon Systems Inc. rose 7/8 to 2-1/4.

The company said it received $1.87 million for a private placement of 1.2 million common shares. Proceeds were used to pay for its previously reported acquisition of Kemper Management Services Inc. and general corporate purposes.

AMEX

Epitope fell 2-1/8 to 15-3/4.

The stock rose 33 percent Tuesday after the company said the Food and Drug Administration gave preliminary approval to its confirmation test for detecting the AIDS virus from saliva rather than blood.