Stocks Extend Weekly Retreat As Oil Price, Housing Pressures Remain

May 23, 2008 9:09 p.m. EST

New York, NY (AHN) - Falling stocks on Friday extended Wall Street's week-long retreat as rising oil price and the growing number of unsold homes kept pressure on carmakers, financials, energy, utilities and materials sectors.

The Dow Jones Industrial Average lost 145 points to close at 12,479, down 3.9 percent for the week. General Motors Corp. led decliners as the carmaker expects second quarter production cuts of up to 230,000 vehicles in the aftermath of a strike at its plant. Shares of Ford Motor Co. also fell as the firm backtracked on its profit forecast for next year.

The Nasdaq Composite Index shed 19 points to finish at 2,444, a 3.3 percent decline for the week. The S & P 500 Index declined 18 points to 1,375 to post a weekly slide of 3.5 percent.

Crude for July delivery rose $1.38 to end at $132 a barrel on the New York Mercantile Exchange as supply continue to be tight ahead of Memorial Day weekend and the hurricane season in June.

Gold futures rose $7.50 to end at $985.20 an ounce.