Dow ends worst week since summer
EmptyNEW YORK -- Stocks ended a lackluster week with a moderate decline Friday as higher oil prices weighed on investors' already rickety sentiment and Treasurys rallied amid concerns about a meltdown in the subprime mortgage market among companies that offer loans to those with spotty credit.
It was the worst week for the Dow Jones industrials since mid-August. The broader market indexes were mixed for the week.
The pullback followed several mixed sessions in which the tech-dominated Nasdaq composite index showed gains but blue chip stocks pulled back in part amid inflation concerns. Oil settled at its highest level of the year Friday, eclipsing a year high set Thursday.
Bond prices rose Friday, rebounding from a sell-off a day earlier, as investors sought quality amid concerns that subprime lenders would be forced to book big write-downs for consumers who were unable to keep up with mortgage payments. The yield on the benchmark 10-year Treasury note fell to 4.67% from 4.73% late Thursday.
"The defaults that you're seeing in the subprime market are a bit of a wake-up call for investors. I think you're going to see a continued flight to safety," said James Sonneborn, wealth manager at RegentAtlantic Capital LLC.
The Dow Jones industrial average fell 38.54, or 0.30%, to 12,647.48.
Broader stock indicators also fell. The Standard & Poor's 500 index fell 5.19, or 0.36%, to 1,451.19, and the Nasdaq slipped 9.84, or 0.39%, to 2,515.10.
For the week, the Dow industrials lost 0.94%, the S&P 500 was off 0.35% and the Nasdaq composite index added 0.75%.