Stocks End Week Down

Updated from 3:46 p.m. EDT

Stocks in the U.S. were weak for the entire session and closed lower Friday as traders dealt with another sizable loss at AIG AIG and a continuing advance in crude oil prices.

The Dow Jones Industrial Average was down 120.90 points, or 0.9%, to 12,745.88, and the S&P 500 lost 9.40 points, or 0.7%, at 1388.28. The Nasdaq gave back 5.72 points, or 0.2%, at 2445.52.

One of the drags on the Dow was AIG, which fell 8.8% to $40.28. The selloff came a day after the insurer said it lost $7.81 billion in its first quarter because of big writedowns on credit-default swaps and mortgage-related investments.

Also depressing sentiment was oil's extended climb into uncharted territory. Crude was up $2.27 to $125.96 a barrel in New York, its best-ever finish. Earlier, it was as high as $126.25.

AIG wasn't the only key financial company making headlines as the week came to a close. Citigroup C, also part of the Dow, was down 2.8% to $23.63 as investors mulled word that CEO Vikram Pandit is looking at ways to shed as much as $400 billion in noncore assets.

One of the big winners was Circuit City CC, whose shares jumped 5.9% to $5.07 after the consumer-electronics seller said it would open its books to potential buyer Blockbuster BBI and the video rental chain's largest shareholder, billionaire investor Carl Icahn.

On the technology side, Nvidia NVDA gained 2.6% a day after its quarterly report, which was followed by a Stifel Nicolaus upgrade. Priceline.com PCLN was even more impressive, adding 12% to $138.63 in the wake of its strong numbers.