Dow slides for seventh week out of eight

June 24, 2011: 6:28 PM ET
U.S. stock market

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NEW YORK (CNNMoney) -- Stocks slid deep into the red Friday, as disappointing news from Oracle and Micron Technology weighed heavily on tech stocks, offsetting slightly positive economic reports on U.S. gross domestic product and durable goods orders.

The Dow Jones industrial average (INDU) lost 115 points, or 1%; to close at 11,935. The Dow fell 0.6% for the week, its seventh weekly decline in the past eight weeks.

The blue chips were dragged lower by the Dow's tech components Microsoft, Intel (INTC, Fortune 500) and Cisco (CSCO, Fortune 500), and, separately, the drug company Pfizer (PFE, Fortune 500). Pfizer shares fell 3% after the FDA rejected its application for a new version of its pain medication oxycodone.

Shares of Pain Therapeutics (PTIE), which co-developed the drug with Pfizer, plunged 43%.

The S&P 500 (SPX) shed 15 points, or 1.2%, to 1,268; and the tech-heavy Nasdaq Composite (COMP) fell 34 points, or 1.3%, to 2,653.

Tech shares were also the biggest laggards on the Nasdaq and S&P throughout Friday's session, following disappointing results from Oracle (ORCL, Fortune 500) and Micron (MU, Fortune 500). Although Oracle's per-share earnings were in line with expectations, the company's hardware division struggled. Shares fell more than 4%.

"Oracle's results took all positive momentum out of the market," said Burt White, chief investment officer at LPL Financial.

Micron shares tumbled 13%, after the chipmaker posted a profit of 7 cents a share -- less than half of what analysts were looking for.

"A lot of these technology companies have exposure overseas as we continue to deal with the issues in Europe and Japan," said Frank Davis, director of sales and trading with LEK Securities. "Earnings may be impacted."

Meanwhile, investors continue to follow developments out of Europe, where an agreement was reached Thursday among Greek leaders, the European Union and IMF. The news helped U.S. stocks recover nearly all their losses in the last hour of trading on Thursday.

The European Union pledged to extend aid to Greece, as long as the country introduces another round of tax hikes and spending hikes -- in an effort to help the debt-stricken country avoid a default.

Picking the dollar's bottom - StockTwits

Economy: The Commerce Department's final reading on first-quarter GDP came in at 1.9%. Economists had expected GDP to remain steady at the previous revision of 1.8%.

Durable goods orders rose 1.9% in May, slightly higher than the 1.5% increase economists had been expecting. That's an improvement from April's downwardly revised 2.7% decline in orders.

Companies: Google (GOOG, Fortune 500) said it received notice of an official complaint from the Federal Trade Commission, which is looking into whether the search giant abused its dominant position on the Web. Shares of the tech giant fell more than 1%.

Shares of Southern Union (SUG) jumped 17% after Williams (WMB, Fortune 500) offered to buy the pipeline company for $39 per share in cash. That tops Energy Transfer Equity's (ETE, Fortune 500) earlier bid for the company.

Newell Rubbermaid's (NWL, Fortune 500) stock was up 2%, after the consumer products maker named former Unilever (UN) executive Michael Polk as its new chief executive. Polk will succeed Mark Ketchum, who is retiring but will remain a director.

World markets: Weakness in U.S. stocks weighed on European markets Friday. Britain's FTSE 100 climbed 0.4%, while the DAX in Germany fell 0.4% and France's CAC 40 lost 0.1%.

Asian markets finished the week on a high note. The Shanghai Composite soared 2.2%, the Hang Seng in Hong Kong rose 1.9% and Japan's Nikkei added 0.9%.

U.S. taps strategic oil reserve

Currencies and commodities: The dollar weakened against the British pound and the Japanese yen, but rose versus the euro.

Oil for August delivery settled up 14 cents to $91.16 a barrel.

Gold futures for August delivery fell $17.90 to $1,502.60 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury edged higher, yielding 2.86%.  To top of page

Index Last Change % Change
Dow 17,071.22 -41.93 -0.25%
Nasdaq 4,505.85 -6.34 -0.14%
S&P 500 1,977.80 -5.05 -0.25%
Treasuries 2.49 -0.04 -1.74%
Data as of 3:08am ET
Company Price Change % Change
Ford Motor Co 15.11 -1.22 -7.47%
Bank of America Corp... 17.01 -0.02 -0.12%
Apple Inc 100.11 2.24 2.29%
Yahoo! Inc 40.52 -0.14 -0.34%
Facebook Inc 79.00 1.78 2.31%
Data as of Sep 29
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.11%4.17%
15 yr fixed3.22%3.26%
5/1 ARM3.46%3.33%
30 yr refi4.16%4.16%
15 yr refi3.27%3.25%
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