Budget Impasse Ends String Of Record Highs

Lingering concerns over the federal budget impasse weakened stock prices Tuesday, stopping the Dow industrial average from reaching its fifth straight record high.

The Dow Jones industrials dipped 1.09 to 4,871.81, slipping just below a record-setting level in the final minutes of trading. At one point earlier, heavy buying of a few blue-chip stocks had sent the Dow up nearly 19 points.

Declining issues led advancers by 13 to 9 on the New York Stock Exchange. Big Board volume rose to 353.70 million shares as of 4 p.m., vs. 295.84 million on Monday.

A budget deadlock between President Clinton and the Republican Congress forced much of the government to shut down Tuesday. Discussions between the sides failed to deliver an agreement, leading the White House to say that the closings could continue through today.

The market’s moves were stemmed by the budget debate, with many players choosing to stay on the sidelines until some resolution was reached.

“We are playing a wait and see game,” said Brian Belski, a technical analyst at Dain Bosworth Inc. in Minneapolis. “We know nothing catastrophic is going on, but we want to remain careful just in case this doesn’t get resolved soon.”

Some of the stocks moving substantially or trading heavily Tuesday:

NYSE

3M, up 2-5/8 at 61-5/8.

Minnesota Mining and Manufacturing, also known as 3M, will discontinue its audio and videotape business and eliminate 5,000 jobs in a major restructuring. The company also announced that it plans to spin off its data storage and imaging systems businesses into a separate, publicly held company.

Micron Technology, down 5 at 56-5/8.

Texas Instruments, down 2 at 60-1/4.

SoundView Financial Group analyst Richard L. Whittington reportedly downgraded the two leading makers of memory chips in the United States.

USAir, down 3-3/4 at 11-5/8.

UAL, up 2-3/8 at 185.

United Airlines’s parent, UAL Corp., said after trading ended Monday it would not make a bid for USAir.

NASDAQ

Engelhard, down 4-1/8 at 21-1/8.

The Iselin, N.J.-based specialty chemical maker reported late Monday some environmental short-falls of a “smog-destroying” radiator system it is testing with Ford Motor Co.

AMEX

Regal-Beloit, down 1 at 20.

The Beloit, Wis.-based power transmission equipment supplier announced it had ended merger talks with Brad Foote Gear Works.