Updated from 3:15 p.m. EDT
U.S. stocks slid into the close Friday, as traders contemplated the previous day's selloff, record-high oil prices and weakening consumer sentiment.
Dow Jones Industrial Average
finished down 106.91 points, or 0.9%, at 11,346.51, and the
was off 4.77 points, or 0.4%, to 1278.38. The
shed 5.74 points, or 0.3%, at 2315.63. Each index lost at least 3% on the week.
was a bright spot on the Dow, rising 2.2% to end at $36.98 on news that its telcagepant for migraines improved pain and migraine-related symptoms in a phase III study.
The U.S. market got 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.
Equities tried to stabilize when the new session arrived, but ultimately couldn't escape more questions about the financials and another climb in crude.
"The markets are puking because the
can't be called to help them out. The Federal Reserve is powerless. They have the kryptonite of soaring inflation and the credit crisis," said Richard Yamarone chief economist Argus Research.
Materials and energy stocks were on the rise.
enjoyed modest gains.
As for oil, it had its highest close ever, up 57 cents at $140.21 a barrel. The
ETF added1.4% to $114.74. Gold closed at $931.30, up $16.20.
In economic data, the University of Michigan's June consumer sentiment index dropped to 56.4 from 59.8 in May, reaching its lowest level in 28 years. The Commerce Department's personal spending number climbed 0.8% from April to May, marking its biggest increase since November 2007. Personal income rose 1.9% for the month, beating analyst predictions of 0.7%.
"Things are not that good, that we can spend at that pace, but things are not that bad as indicated in the consumer confidence. That's a real exaggeration of what's going on out there," said Yamarone. He said that the spending can be explained by the government's stimulus package.
Ahead of the new day, Lehman Brothers said
could be facing another $5 billion in writedowns because of its exposure to the bond insurers.
credit rating on watch for a downgrade to A1 from Aa3. Moody's cited as weaknesses Morgan Stanley's exposure to commercial real estate and leveraged loans.
Also, insurance firm
is bracing for as much as $5 billion in losses related to subprime mortgages,
reported. The stock dropped 1.2% to $27.75.
On the earnings side, 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
also announced it would trim as many as 1,290 jobs as a profit-boosting measure. Anheuser had on Thursday rejected an unsolicited bid of $46 billion from InBev.
In tech, telephone company
led the decline, falling 5.4% to close at $10.27 on an announcement that Sony Ericsson, its joint venture with
, has seen decreased demand for its mobile phones.
Credit Suisse also downgraded
to neutral from outperform, predicting the company would have trouble keeping up in the smartphone space.
RIM shares continued Thursday's selloff, losing 2% to $120.98, and
dropped 13% to close at $51.04.
Management consulting and information technology services provider
was one of few tech stocks trading in the green. After Thursday's close, the company
that beat expectations. The stock climbed 6.4% to $41.34.
Away from the stock market, Treasury prices were rising. The 10-year note was up 17/32 in price to yield 3.97%, and the 30-year was rose 1-8/32, yielding 4.52%. The dollar was losing ground against the euro, the yen and the British pound.
Overseas, European markets were mixed, while Asia's exchanges slid. London's FTSE was up 0.2%, and Frankfurt's DAX was down 0.6%. Japan's Nikkei and Hong Kong's Hang Seng were both weaker.