News of the Chase-Chemical banking merger intensified speculation about consolidation in the banking industry. Chase topped the Big Board's list of active issues, going up 6 5/8 to 59 5/8, while Chemical rose 5 5/8 to 60 and was the second most heavily traded stock on the New York Stock Exchange. Overall, advancers led decliners 1,145 to 1,104. The Dow Jones industrial average ended down 7.40 at 4,594. Nasdaq's composite index also fell 11.82 to end the day at 1,008.16. The Standard & Poor's 500 stocks dipped 1.05 to 559.05. Gold was not listed in London because of a holiday.