Wall Street ended a depressing week with another big loss on Friday amid ever-escalating worries about high oil prices and fallout from...
NEW YORK — Wall Street ended a depressing week with another big loss on Friday amid ever-escalating worries about high oil prices and fallout from the credit crisis.
The Dow Jones industrial average fell 106.91 to 11,346.51, compounding Thursday’s 358-point skid. The blue-chip index is down 19.9 percent from its high in October.
The Dow has fallen nearly 460 points in the last two days and reached its lowest point since September 2006.
Microsoft, one of the 30 Dow stocks, slipped 12 cents to close at $27.63 a share. Boeing, also a Dow stock, fell $1.29 to $66.92 — its third-straight close at a 52-week low.
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Broader stock indicators also closed lower. The Standard & Poor’s 500 index fell 4.77 to 1,278.38, and the Nasdaq composite index fell 5.74 to 2,315.63.
Investors again contended with a seemingly relentless stream of troubling news about the financial sector. Moody’s Investors Service said it is reviewing investment bank Morgan Stanley for a possible downgrade. There were also reports that Merrill Lynch might have to write off nearly $6 billion of risky mortgage-backed debt.
In addition to anxiety about the financials, the market watched oil march higher — the price of crude rose to a record of $140.21 a barrel. Wall Street remains concerned that higher commodity prices will slam consumers with not only elevated costs for energy and food, but also for other goods if cash-strapped companies decide to pass along the rising costs.
“People are trading with a lot of emotion,” said Alexander Paris, an economist and market analyst for Barrington Research. “I think the market is trying to make a bottom, but the question is will it hold there or just crash through. It feels just like the top of the technology bubble in 2000 — you know there’s something wrong but it is hard to time it.”