Translate This Page

Saturday, June 11, 2011

Dow, S&P slide for sixth week (ext)

NEW YORK (CNNMoney) -- Stocks retreated broadly on Friday, with the Dow ending below 12,000 for the first time in three months and the Nasdaq erasing all of its gains for the year.

Insurance and financial stocks started the selling spree, but it quickly spread to all sectors. Commodities were hit hard. Oil and silver prices slumped nearly 3%.

Late in the session, bank stocks turned higher, helping the broader market pare losses. The Federal Reserve issued a proposal to increase capital requirements on large banks by 5%, which was far less than investors feared.

But the rise in bank stocks was simply not enough to help the broader market. The Dow Jones industrial average (INDU) fell 172 points, or 1.4%, to end at 11,952.

The S&P 500 (SPX) slid 18 points, or 1.4%, to close at 1,271; and the Nasdaq Composite (COMP) fell 41 points, or 1.5%, to 2,644.

"There's a lot of emotion in this market at the moment, and the conversations among traders are nearly all leaning toward the bear side," said Frank Davis, director of sales and trading with LEK Securities.

Friday's retreat comes a day after stocks snapped a six-day losing streak.

Sentiment remains decidedly pessimistic. "A lot of us shook our heads as the market headed higher, despite higher energy prices, the economy and the turmoil going on abroad," Davis said.

The dollar jumped more than 1% against the euro and gained 0.6% versus the British pound. The greenback edged lower against the Japanese yen.

No comments: