Stocks Retreat in Slow Trading; Dow Drops 6

The stock market turned downward in quiet trading Monday, retreating after last Friday’s rally.

Auto stocks were notably weak on talk of intensified competition in the industry.

The Dow Jones average of 30 industrials, which had climbed 8.06 points Friday, fell back 6.04 to 1,328.41.

Volume on the New York Stock Exchange came to 83.67 million shares, against Friday’s post-holiday total of 62.45 million, which marked a low point for the year to date.

Friday’s advance was attributed to a sharp drop in interest rates in the credit markets.

In the auto group, General Motors dropped 7/8 to 70 3/8, Ford Motor 1 to 43 3/4 and Chrysler 1/2 to 34 7/8. All three issues made the NYSE active list.

Energy issues were mostly lower on word that oil ministers of the Organization of Petroleum Exporting Countries concluded a three-day meeting without reaching agreement on a plan to try to bolster prices.

Exxon was the volume leader among Big Board issues, off 1/8 at 52 5/8 in trading that included a 1.91-million-share block at 52 1/8. Atlantic Richfield fell to 58 7/8, Texaco dropped 5/8 to 36 1/2 and Mobil was off at 29 7/8.

An exception was Mesa Petroleum, which gained to 14 3/4. Mesa’s directors approved a plan to buy back as much as $100 million of the company’s stock.

Dreyfus Corp. climbed 2 3/8 to 60. The stock has benefited from the booming business that mutual fund managers have experienced this year.

In the bond market, prices fell amid uncertainty about what may be done at this week’s meeting of Federal Reserve policy-makers.

In the secondary market for Treasury bonds, prices of short-term governments fell 2/32 point, intermediate maturities fell 3/32 point and long-term issues were off 7/32 point, according to the investment firm of Salomon Bros.

In corporate trading, industrials were unchanged and utilities fell 1/8 point. Among tax-exempt municipal bonds, said general obligations were unchanged and revenue bonds were up 1/8 point. Trading was light.

Yields on three-month Treasury bills were up 15 basis points to 6.92%. Six-month bills rose 10 basis points to 6.97%, and one-year bills were up 7 basis points at 7.09%.

Yields on 30-year Treasury bonds edged up to 10.29% from 10.28% late Friday.

The federal funds rate, the interest on overnight loans between banks, traded at 7.938%, down from 8.125% late Friday.