Stock prices closed broadly lower Tuesday in light trading.
In Europe, the U.S. dollar rose sharply in response to a rise in U.S. construction spending. Gold prices fell.
The Dow Jones industrial average finished down 4.82 at 1329.19 after being down about 10 points early in the session. Last week, the Dow climbed 15.69 points.
Declines held a 5-to-2 lead over advances on the New York Stock Exchange near the close. The NYSE composite index was off 0.68 to 108.71 late in the session.
Big Board volume totaled about 82.13 million shares, nearly even with the 81.62 million traded Friday, the last session before the Labor Day holiday.
On the NYSE`s active list near the close, Travelers had fallen 50 cents, to $41.12, after a 3.9-million-share block crossed at $41.37. The stock was a new offering that Travelers sold as a block to Morgan Stanley & Co., the issue`s underwriter.
SCM Corp. was up $4.50, to $71.50. Hanson Trust PLC raised its offer for SCM to $72 a share.
In the news background, the U.S. government reported in Washington that construction spending rose 1.2 percent in July. Currency dealers said they had expected a small decline.
On the world currency market, the combination of encouraging figures on leading indicators and the balance of trade, reported Friday, along with the construction spending statistic helped quell fears of sluggish U.S. economic growth in the third quarter, the dealers said.
Gold was quoted in London at a late bid price of $328 an ounce, down from $334.50 Monday. Silver was also down, quoted in London at a late bid of $6.16 a troy ounce, down from $6.235 Monday.
On the Chicago Board of Trade, wheat closed 1 1/2 cents lower to 1/2 cent higher with the contract for delivery in September at $2.75 a bushel;
corn was unchanged to 5 3/4 cents lower with September at $2.24 1/4; oats were unchanged to 1 3/4 cents lower with September at $1.15 3/4; and soybeans were 8 3/4 cents lower to 1/2 cent higher with September at $5.38 1/2.
The stock market generally drifted lower in lackluster trading during August, which analysts attributed in part to the dull activity that typically occurs during the summer vacation season.
But brokers also said the market`s lack of conviction reflected deep uncertainty on Wall Street as to whether the economy is rebounding from its weak performance in the first half of the year.
Some economists continue to predict that economic growth will accelerate in the latter stages of 1985, but recent mixed economic indicators have left many Wall Streeters doubtful as to whether that will take place.
A trade group added support Tuesday to those who think the economy remains in a downward trend. The National Association of Purchasing Management, representing corporate buying agents, said a survey of its members indicated the economy weakened further last month.
