* Time Inc jumps after report of company rejecting takeover bid
* Amazon weighs the most on the S&P, Nasdaq
* Oil prices fluctuate on uncertainty regarding OPEC deal
* Indexes down: Dow 0.20 pct, S&P 0.17 pct, Nasdaq 0.24 pct (Updates to open)
By Tanya Agrawal and Anya George Tharakan
Nov 28 (Reuters) - U.S. stocks were lower on Monday, weighed down by financial and consumer discretionary stocks, as some investors cashed in after a record-setting week.
The three major U.S. indexes closed higher for the third week in a row on Friday, with the S&P 500 notching its seventh record close since Nov. 8.
Oil prices bounced back in volatile trading after falling as much as 2 percent as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.
The dollar index extended its losses on Monday, retreating from its highest levels since 2003, as U.S. Treasury yields eased from recent peaks.
The dollar had been on a tear on expectations that President-elect Donald Trump's infrastructure spending plans would boost inflation. The high likelihood of an interest rate hike in December also helped the rally.
The U.S. Federal Reserve meets on Dec. 13-14, with traders pricing in an 89 percent chance of a hike.
"I think today's pullback is twofold - the uncertainties over an OPEC deal, and the market subject to a normal technical pull back," said Peter Cardillo, chief market economist at First Standard Financial in New York.
"The fact that investors have a full plate to chew on this week and the absence of major economic news today offers investors a chance to take some light profit taking ahead of a barrage of macro news and the OPEC meeting."
At 9:36 a.m. ET (1436 GMT) the Dow Jones industrial average was down 39.1 points, or 0.2 percent, at 19,113.04.
The S&P 500 was down 3.82 points, or 0.17 percent, at 2,209.53.
The Nasdaq Composite index was down 12.85 points, or 0.24 percent, at 5,386.07.
Seven of the 11 major S&P sectors were lower, with the consumer discretionary index leading the decliners with a 0.48 percent fall.
Amazon was down 1.5 percent at $769.03 after Citigroup reduced its price target on the stock. The stock was the biggest drag on the Nasdaq and the S&P.
The financial index also fell 0.51 percent.
ConocoPhillips was up 1.5 percent at $46.72 after Goldman Sachs raised its price target on the stock.
Time Inc jumped 12 percent to $15.42 after the New York Post reported that the publisher had rejected a takeover bid from billionaire investor Edgar Bronfman Jr.
Declining issues outnumbered advancers on the NYSE by 1,305 to 1,301. On the Nasdaq, 1,420 issues fell and 828 advanced.
The S&P 500 index showed 12 new 52-week highs and no new lows, while the Nasdaq recorded 58 new highs and two new lows. (Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty)