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Stock Market Tumbles on OPEC's Failure to Cut Oil Production

Strategic Insights

— 2 min read

The New York Stock Exchange (NYSE) faced a moderate decline on Monday, March 28, in quiet trading, with the Dow Jones industrial average losing 14.10 points to 3760.63. The pullback was largely attributed to weakness in oil stocks following the Organization of Petroleum Exporting Countries' (OPEC) decision not to trim production to stop the decline in oil prices. This led to additional pressure on the key barometer, with Chevron, the biggest loser among the Dow's three oil components, experiencing a 1-point decline to 88.

As the market struggled to recover from last week's sharp losses, analysts expressed cautious optimism that the continued sell-off could create a buying opportunity for some stocks, particularly those sensitive to economic conditions. William Raftery, a technical analyst at Smith Barney Shearson Inc., noted that the market "remains on the weak side" but believes that the 3750 level on the Dow is a key test that the market is currently facing.

Key Takeaways:

  • The Dow Jones industrial average lost 14.10 points to 3760.63, with the weakest link in the oil sector.
  • Chevron, Texaco, and Exxon experienced the most significant declines among the Dow's three oil components, with prices down 1, 1, and 1 point, respectively.
  • The New York Stock Exchange composite index was down 0.60 to 255.69, while Standard & Poor's 500-stock index was down 0.78 to 459.80.
  • Declines topped advances 1,140-669 among the 2,491 issues crossing the NYSE tape, with a total volume of approximately 78,990,000 shares.
  • Analysts believe that the continued sell-off could create a buying opportunity for economically sensitive stocks, particularly in the oil segment.
  • The 3750 level on the Dow is a key threshold that the market is currently facing, according to William Raftery, a technical analyst at Smith Barney Shearson Inc.

Statistics:

  • The Dow Jones industrial average lost 14.10 points to 3760.63.
  • Declines topped advances 1,140-669 among the 2,491 issues crossing the NYSE tape.
  • Total volume was approximately 78,990,000 shares.
  • The New York Stock Exchange composite index was down 0.60 to 255.69.
  • Standard & Poor's 500-stock index was down 0.78 to 459.80.
  • The 3750 level on the Dow is a key threshold that the market is currently facing, according to William Raftery.

Sources:

  • "Stock prices turn moderately lower in quiet trading" by the Associated Press, March 28 (exact date not provided).
  • William Raftery, technical analyst at Smith Barney Shearson Inc., as quoted by the Associated Press, March 28 (exact date not provided).
  • OPEC's decision not to cut oil production, as reported by the Associated Press, March 28 (exact date not provided).

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