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NEW YORK (CNN/Money) -
Stocks got battered Friday, with the Dow industrials losing more than 100 points for the second session in a row on worries about the impact of record oil prices on the economy and corporate profits.
As of around 5:30 p.m. ET, Nasdaq and S&P futures pointed to more declines Monday, when fair value is taken into account.
The Dow Jones industrial average (down 123.60 to 10,297.84, Charts) lost around 124 points, or 1.2 percent.
The Nasdaq composite (down 17.39 to 2,053.27, Charts) and the Standard & Poor's 500 (down 9.16 to 1,191.57, Charts) index both posted slightly smaller declines.
All three major gauges fell on the week, too.
"The primary reasons behind the back-to-back triple digit losses for the Dow are fears of a U.S. policy of protectionism against China and rising oil prices," said Michael Sheldon, chief market strategist at Spencer Clarke.
"That double whammy has led to a decline in the market which will probably spill over into the first part of next week," he added.
Stocks slumped Thursday in a broad-based selloff after crude oil prices briefly hit the $60 a barrel marker, a key psychological level that seemed to trigger electronic sell programs, as well as investor fears about oil prices.
Sustained higher oil prices can eventually cut into the economic growth, corporate profits and consumer spending. Worries about that continued to weigh on the market Friday.
U.S. light crude oil for August delivery rose 42 cents to settle at $59.84 a barrel Friday on the New York Mercantile Exchange, a new all-time closing high.
"We had a fairly sharp drop yesterday and this is an extension of that," said Peter Cardillo, chief market analyst at S.W. Bach & Co.
Cardillo said the durable goods orders report was also having an impact. While the report showed a big jump in May, when you strip out the transportation component, orders actually fell.
Investors may also be wary ahead of next week's key spate of news, including reads on personal income and spending, manufacturing and construction spending, consumer confidence, and most significantly, the next Federal Reserve policy-setting meeting, which concludes Thursday.
Friday's movers
Stock declines were broad-based with 24 out of 30 Dow issues closing lower. All of the major tech indexes fell as well, led by software and networking.
Among stock movers, Guidant (down $4.70 to $63.90, Research) slumped nearly 7 percent in active New York Stock Exchange trade. The medical device maker said it told doctors to stop implanting some of its defibrillators -- cardiac devices -- amid continuing safety problems. A recall may be on tap, as well.
Alcoa said it will cut about five percent of its workforce, as part of its restructuring. The aluminum producer and Dow component announced a smaller wave of job cuts earlier in the year.
Alcoa (down $0.73 to $26.46, Research) shares slid 2.7 percent.
Fellow Dow component IBM (down $1.40 to $74.01, Research) lost 1.9 percent amid reports that while it is cutting up to 13,000 jobs in Europe and the United States, it is adding more than 14,000 workers in India.
Other Dow decliners included Hewlett-Packard (down $0.59 to $23.80, Research), Merck (down $0.70 to $30.55, Research) and Home Depot (down $0.90 to $38.24, Research).
Solectron (down $0.16 to $3.66, Research) slumped after reporting lower fiscal third-quarter earnings late Thursday that were in line with estimates on lower revenue that missed estimates. The tech industry electronics manufacturer also forecast fiscal fourth-quarter earnings in a range that could miss forecasts and revenue that is below forecasts.
Solectron's bad news also weighed on Cisco Systems (down $0.48 to $19.30, Research), Solectron's biggest customer in terms of sales.
Cisco and a number of networking stocks fell, dragging the Amex Networking (down $6.32 to $218.11, Research) index down by 2.8 percent.
Xyratex (down $2.77 to $16.05, Research) slumped 14.7 percent. The computer data storage technology provider warned that fiscal third-quarter earnings will miss forecasts by a wide margin.
Intel (down $0.67 to $26.10, Research) led the list of falling chip shares, dragging the Philadelphia Semiconductor (down 8.25 to 427.00, Charts) index down by 1.9 percent.
Tibco Software (down $0.31 to $6.60, Research) lost more than 4.5 percent after reporting quarterly earnings that fell from a year ago, but were nonetheless in line with estimates. The company also reported that licensing revenue fell from a year ago.
Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of just under 2 billion shares. On the Nasdaq, decliners topped advancers four to three as 2.28 billion shares traded hands.
Also in focus Friday: news that durable goods orders jumped a much bigger-than-expected 5.5 percent in May, according to a government report released before the bell. Goods orders were expected to jump 1.5 percent, according to a consensus of economists surveyed by Briefing.com. Orders rose a downwardly revised 1.4 percent in April.
However, stripping out transportation, which includes a big jump in aircraft purchasing, orders actually dipped.
A separate report showed that new home sales rose to a 1.30 million unit annual rate in May from a downwardly revised 1.27 million rate in April.
Treasury bonds rose, lowering the yield on the 10-year note to 3.92 percent from 3.95 percent late Thursday. Treasury prices and yields move in opposite directions.
In currency trading, the dollar fell versus the euro and gained versus the yen.
COMEX gold fell $1.20 to settle at $442 an ounce.
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