U.S. Markets Finish Week Lower As Oil Sets New High

New York, NY (AHN) - All three major indices closed lower Friday, ending a rough week that saw crude oil hit record prices and the Dow Industrials shed 4 percent.

The S&P 500 lost 2.9 percent on the week while the Nasdaq Composite shed 3.8 percent.

Oil traded as high as $142.99 on Friday, setting a new all-time high, before settling at $140.25, up 60 cents a barrel.

The markets did rally off their lows Friday, but still posted losses. The Dow Jones Industrial slid 107 points or 0.9 percent while the S&P 500 shed 5 points or 0.4 percent.

The financial sector continued to sell off, finishing lower by 1.3 percent as every industry component closed lower on the session. Merrill Lynch (MER) and American International Group (AIG) provided drags on the group as reports surfaced the companies may take additional writedowns.

The financial sector finished the week 6.5 percent lower.

Technology stocks made a late rally, paring most of its losses as the Nasdaq Composite finished down just 6 points or 0.25 percent. The late rally was led by Apple Inc. (AAPL) as shares soared in the last hour, swinging from negative territory to finish 1 percent higher at $170.09.

Personal consumption expenditures (PCE) data rose 0.4 percent in May.

The Reuters/University of Michigan Survey of Consumers saw the confidence index drop to 56.4 for June. The reading marks a 28-year low in the index.

On the earnings front, KB Homes (KBH) reported a larger than expected second quarter loss as the homebuilder continues to struggle in the current housing market.

Accenture (ACN) reported better than expected results for its fiscal third quarter as the consulting firm saw profit jump 36 percent.

Monday will begin a holiday shortened week as the markets are closed Friday, July 4.