Market Gives Ground in Moderate Trading: U.S. Smelting Hops $6.25
NEW YORK, Fob. 19 (AP)ÛÓA general decline of blue chips, combined with big gains by a few specially situated issues, highlighted today the sharpest stock market decline of this month. Trading was moderately active.</br></br>The news background did nothing to enliven optimism. Housing starts in January fell to an 11-month low after seasonal adjustment. Word that some Soviet troops will be withdrawn from Cuba merely focused attention on that trouble spot. Various objections to President KennedyÛªs tax program were aired before the House Ways and Means Committee.</br></br>The Dow Jones industrial average dropped 2.13 to 686.83. The Associated Press average of 60 stocks fell 1.2 to 258.7 with industries off 1.4, rails off .1, and utilities off 1.3.</br></br>U. S. Smelting was the most active stock, its rise of 6Vi putting the final price at 87% on turnover of 85,000 shares. This thinly distributed issue has attracted attention because of a looming proxy fight. Brokers said, however, that todayÛªs unusual rise was probably due to short covering.</br></br>How much of a ÛÏsqueezeÛ there is on the ÛÏshortsÛ in U. S. Smelting should be clearer tomorrow when the New York Stock Exchange will announce its monthly short interest totalÛÓthe aggregate short sales in the various stocks.