NEW YORK — Deepening concern over falling oil prices roiled the stock market Tuesday, weakening energy-related issues and dropping the Dow Jones industrial average 14.68 points to a closing 1,514.45.
The decline of oil prices to near the $20-a-barrel mark also took a toll on banks that have large outstanding loans to oil-producing developing nations, analysts said, but helped stabilize the stocks of airlines.
"Declining prices help some sectors and hurt others, but people are interpreting this (oil) price fall as being an overall negative, since it's so disorderly and so extensive," said Michael Metz, analyst with Oppenheimer & Co. brokerage in New York.
Six of the 15 most heavily traded issues on the New York Stock Exchange were sagging stocks of energy companies.
Among the oil stocks, Occidental Petroleum, the Big Board's most heavily traded issue with 2.25 million shares changing hands, fell 7/8 to 27 7/8. Exxon declined 1 3/4 to 50, Texaco 1 1/8 to 28 1/2, Phillips Petroleum 3/8 to 11 1/2, Chevron 3/4 to 34 7/8 and Atlantic Richfield 1 3/8 to 57 7/8.
Exxon, Texaco and Chevron are the three major oil companies among the 30 industrial issues whose prices make up the Dow Jones industrial average.
In the early afternoon, the market learned that a rally in the oil market had faltered, and the Dow dropped a quick 18 points. The index was off as much 20 points twice during the afternoon.
On the NYSE, declining stocks outpaced advancing issues by a margin of five to three. Volume hit 128.3 million shares, rising from 85.3 million on Monday.
Investors sold off bank stocks, although quarterly earnings issued for most of the big money center banks have been positive.
Bankers Trust's stock was down 2 3/4 to 70 3/4, Chase Manhattan slid 2 3/8 to 74 3/4 and Manufacturers Hanover, despite a report of higher quarterly earnings, declined 2 1/8 to 45 1/8.
BankAmerica, on trading of 1.8 million shares, was down 7/8, closing at 12. On Tuesday, the bank holding company reported a fourth-quarter loss of $178 million, a loss for 1985 of $337 million, suspended its quarterly dividend payment and was fined $4.75 million by the U.S. Treasury Department for infractions of currency transaction reporting regulations.
Among the airlines, which will gain from declining oil prices, Delta gained 7/8 to 42; NWA, parent company of Northwest Airlines, moved up 1 1/2 to 48, and UAL, parent of United Airlines, advanced 3/8 to 52 5/8.
The Associated Press reported that government bond prices declined as short-term interest rates fell and rates on longer-maturities remained near recent levels.
Corporate issues increased slightly and municipals showed little change.
In the secondary market for Treasury securities, prices of short-term governments finished unchanged to off 1/32 point, intermediate maturities went down 1/8 point to 3/16 point and long-term issues were off point to 5/16 point.
In corporate trading, utilities and industrials rose 1/8 point in light trading.
Among tax-exempt municipal bonds, general obligations and revenue bonds were unchanged in quiet dealings.
Yields on three-month Treasury bills moved down 12 basis points to 7%. Six-month bills fell 10 basis points to 7.13% and one-year bills dropped five basis points to 7.23%.
Yields on 30-year Treasury bonds stood at 9.41%, about the same as late in the previous session.
The federal funds rate--the interest on overnight loans between banks--traded at 8%.