Drop In Oil-related Stocks To Blame For All Of The Dow's Price Decline

By Tomi KilgoreMarketsMarketWatch Pulse

The Dow Jones Industrial Average's decline Thursday could be blamed on the selloff in oil prices, as the blue-chip barometer's biggest decliners are tied to the oil market. Crude oil futures tumbled 4.3% toward the lowest close since November, amid rising U.S. output and expectations of recovery in Libyan production. Oil giant Chevron Corp.'s stock slumped $2.36, or 2.2%, in afternoon trade to pace the Dow losers, while rival Exxon Mobil Corp. shares fell $1.03, or 1.3%, to be the third-biggest decliner. Meanwhile, Caterpillar Inc.'s stock dropped $2.13, or 2.1%, to be the second-biggest Dow decliner. The construction and mining equipment maker's stock has a 0.5856 correlation with crude oil futures over the past five years. Combined, Chevron's, Exxon's and Caterpillar's stock price declines were shaving about 38 points off the Dow's price, which was down 32 points.

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