Updated from 9:38 a.m. EDT
Stocks in the U.S. were in the red Friday morning as another sizable loss at
and oil's continuing advance gave sellers the advantage.
Dow Jones Industrial Average
was down 91 points to 12,776, and the
was losing 7 points at 1391. The
was fractionally lower at 2450. All three were off their worst levels.
One of the drags on the Dow was AIG, which was falling 6.6% to $41.22. The selloff came a day after the insurer said it lost $7.81 billion
because of big writedowns on credit-default swaps and mortgage-related investments.
Also depressing sentiment was oil's extended climb into uncharted territory. In recent New York trading, crude futures were up $1.09 to $124.78 a barrel. Earlier, it was as high as $126.20 in the premarket.
Elsewhere in the commodities complex, gold reversed course and went down $8.30 to $873.80 an ounce. Silver was losing 30 cents to $16.57.
AIG wasn't the only key financial company making headlines as the week wound down.
, also part of the Dow, edged up 0.3% to $24.36 as investors mulled word that CEO Vikram Pandit is looking at ways to shed as much as
One of the big winners was
, whose shares jumped 9.4% to $5.24 after the consumer-electronics seller said it would open its books to potential buyer
( BBI) and the video rental chain's largest shareholder, billionaire investor Carl Icahn.
On the technology side,
was gaining 5% a day after its
, which was followed by a Stifel Nicolaus upgrade.
was even more impressive, jumping nearly 16% to $143.16 in the wake of its
was gaining 7% after sales of
Guitar Hero 3
Call of Duty IV
led to robust
Treasury prices were surrendering their early gains. The 10-year note was unchanged in price, yielding 3.78%, and the 30-year bond was gaining just 5/32, yielding 4.53%.
The dollar was weak against most of its competitors, including declines of 0.8% against both the yen and the Swiss franc. The euro rose 0.2% to $1.5437.
On the data side, the March U.S. trade deficit shrank to $58.2 billion from $61.7 billion in February, in part because the stumbling greenback made domestic goods cheaper overseas. Analysts expected the deficit to be $61 billion.
Meanwhile, markets overseas were sinking. Tokyo's Nikkei fell 2.1% overnight, and Hong Kong's Hang Seng shed 1.5%. Europe's major indices weren't much better. London's FTSE was losing 1.2%, and the Paris Cac was retreating 2.5%. Frankfurt's Dax was lower by 1.3%.
This article was written by a staff member of TheStreet.com.