Stocks Socked by Continued Selling

Updated from 12:08 p.m. EDT

Stocks in the U.S. were taking more hits Friday as investors dealt with a resuming climb in oil and abysmal home-sales numbers while unwinding their positions ahead of a three-day holiday weekend. U.S. markets will be closed Monday in observance of Memorial Day.

The Dow Jones Industrial Average was losing 141 points, or 1.1%, to 12,485, and the S&P 500 gave up 18 points, or 1.3%, at 1376. The Nasdaq Composite sank 29 points, or 1.2%, to 2435.

"This week was not terrific, so I think investors are looking to take money off the table ahead of the three-day weekend," said Paul Nolte, director of investments with Hinsdale Associates. "It's sell now and ask questions later."

Earlier in the week, stocks were crushed in a huge two-day selloff as investors were jarred by new highs in oil and gloomy economic forecasts by the Federal Reserve. Equity measures rose a bit Thursday in recovery, but the session saw rather thin trading volume.

"We are seeing a little bit of a different dynamic in the market," said Nolte. "We're seeing more volume now on the market declines than on those advancing days, and certainly over the last four months or so, volume had been better on the advancing days."

That shift, he added, is not a good sign.

Helping to drag on the market Friday were crude oil futures, which trended higher again following yesterday's brief reprieve from a stunning upward climb over the past few weeks. Crude hit a high near $134 earlier today, but later pared back its gains to 52 cents at $131.33.