NEW YORK, JUNE 7 -- The stock market swallowed its third straight loss today as the Dow Jones industrial average slumped 14 points despite a bond market rally.

Index-arbitrage program selling was widely cited for stock losses into early afternoon. The sizable sell programs were said to reflect the beginnings of position squaring by index-arbitrage accounts ahead of June 15th's big quarterly expirations of derived equity instruments -- the June ''triple-witching'' hour.

While many traders wrote off the session to pre-expiration volatility or to a third day of continued profit-taking after a week of sharp gains, others said that market action was beginning to hint at near-term ''buyer exhaustion."

''The programs have been of good size today,'' said derived-instruments trader Michael Bernstein at Miller Tabak Hirsch and Co. ''There is no question that {arbitrage} accounts have gotten pretty heavy with stock,'' he said, and that sell programs were used today to more evenly balance those accounts ahead of the June 15 ''triple witching.''

Observers noted that support visibly diminished for various consumer stocks after the Federal Reserve announced that April installment debt grew at a pace of only $584 million. An increase of about $2 billion generally was expected.

Among the hardest hit were high-flying stocks such as the Gap, which dropped 4 1/8 to 58 3/8, and the Limited, which shed 1 7/8 to 47 3/8.

Economist A. Gary Schilling, who has long predicted that the U.S. consumer finally will put an end to the massive 1980s economic expansion, said, ''The Fed figures for April are in line with our thinking.

"The consumer buying binge is unsustainable,'' he said, noting the near-parabolic rise since early 1983 of the ratio of outstanding consumer and mortgage debt to disposable personal income.

At the close, the Dow stood at 2897.33, down 14.32, while declines outpaced advances on the Big Board by a modest 4-to-3 ratio on moderate volume of 160 million shares.

Among industry groups, oils and oil-service stocks, considered oversold on a short-term basis, firmed somewhat after three sessions of serious erosion on speculation of a brewing OPEC price war. Many issues posted fractional gains even though spot crude futures lost 25 cents per barrel to close at $16.67. Kerr McGee, for example, helped lead the rebound with a 1 1/8 gain to 46 3/4.

Motorola climbed 2 3/8 to 85 3/4 after the Japanese government, as expected, selected the company's technology as the standard for that country's new cellular telephone system.

The Dow transports slipped 4.19 to 1208.58, while the utilities eased 0.63 to 213.91.

Among broad stock indexes, the Standard & Poor's 500 was down 1.81 at 363.15, the NYSE Composite down 0.94 at 198.21, the Value Line down 0.50 at 289.86, the Amex Market Value down 0.62 at 363.57 and the Nasdaq Composite down 0.87 at 464.09.