Updated from 10:05 a.m. EDT
U.S. stocks were in a holding pattern early Friday, with blue chips narrowly mixed and tech shares creeping to the downside.
Dow Jones Industrial Average
was recently down 35 points at 11,417, and the
was tacking on 1 point to 1284. The
was down 8 points at 2312.
The U.S. indices were rocked Thursday, in no small part because of a Goldman Sachs downgrade of the domestic investment banks and the firm's negative comments on
. Goldman's comments combined with weakness in
Research In Motion
worked to create conditions for a steep selloff.
The Dow plunged 358.41 points, or 3%, and ended at 11,453.42, its lowest level in more than a year. The S&P fell 38.82 points, or 2.9%, to 1283.15, and the Nasdaq slumped 79.89 points, or 3.3%, to 2321.37.
Ahead of the new day, Goldman offered more of the same, this time cutting
to market perform from outperform. RIM also suffered a JMP Securities downgrade to market perform.
Lehman Brothers also weighed in on
, saying the brokerage could be facing another $5 billion in writedowns because of its exposure to the bond insurers.
Meanwhile, insurance firm
is bracing for as much as $5 billion in losses related to subprime mortgages,
Among earnings, homebuilder
posted a widened second-quarter loss that was worse than Wall Street's expectations.
Following the prior close,
Bank of America
announced it would
7,500 jobs after merging with mortgage lender
In tech, telephone company
led the decline, falling 6% on an announcement that Sony Ericsson, its joint venture with
has seen decreased demand for its mobile phones.
RIM shares continued Thursday's selloff, losing 4%, and
was dropping 5%.
Materials and energy stocks were on the rise.
enjoyed modest gains.
Traders were also monitoring the latest surge in oil, whose run-up this year was given new fuel in the previous session by comments from OPEC's president that $170-a-barrel crude could be a reality this year.
Lately, oil was up 96 cents at $140.60 a barrel. It had previously reached a heretofore unseen price of $141.67. The
ETF was adding 0.8% to $114.01. Gold was up $8.60 at $923.70.
In economic data, the Commerce Department's personal spending number climbed 0.8% from April to May, its biggest increase since November 2007. Personal income rose 1.9% for the month, beating analyst predictions of 0.7%.
Treasury prices were rising. The 10-year note was up 9/32 in price to yield 4%, and the 30-year was up 18/32, yielding 4.57%. The dollar was gaining against the euro, but losing ground to the yen and the British pound.
European markets were mixed, while Asia's exchanges slid. London's FTSE was up 0.6%, and Frankfurt's DAX was down 0.1%. Japan's Nikkei and Hong Kong's Hang Seng were both weaker.