Stocks show moderate decline after sell-off

NEW YORK - Wall Street sagged again Friday but took a break from the heavier selling of recent days as energy, utility and technology stocks showed some advances and bank stocks declined.

Energy names advanced as oil showed modest gains after big losses this week. Exxon Mobil Corp. rose $1.34, or 2 percent, to $69.85, while Marathon Oil Corp. rose 99 cents, or 5.1 percent, to $20.57.

A recovery in other commodity prices helped stocks like aluminum producer Alcoa Inc., which rose 88 cents, or 13 percent, to $7.73.

Among technology stocks, Microsoft Corp. rose 99 cents, or 5.1 percent, to $20.57, while Hewlett-Packard Co. rose $1.35, or 4.2 percent, to $33.18.

Bank stocks fell, led by Citigroup Inc. The stocks initially rose following a report that the banking giant was considering a sale to boost investor confidence. The bank was scheduled to hold a board meeting Friday to discuss whether to sell all or part of itself, The Wall Street Journal reported. But as no hard news emerged from the company about that possibility, Citigroup's shares tumbled nearly 20 percent to below $4 a share — their lowest level in more than 15 years.

Bank of America Corp. fell 45 cents, or 4 percent, to $10.80, while Merrill Lynch & Co. fell 42 cents, or 5.3 percent, to $7.54.

A decrease in selling pressure wasn't necessarily a surprise given the scope of the declines in the past two days. On Thursday, the Standard & Poor's 500 index fell 6.7 percent to its lowest close since April 1997, while the Dow Jones industrial average fell 445 points, or 5.6 percent, to its lowest finish since March 2003.

In late morning trading, the Dow Jones industrial average fell 64.12, or 0.85 percent, to 7,488.17. The Dow's decline followed a drop in the blue chips of 10.4 percent Wednesday and Thursday, the biggest two-day slide since October 1987.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 10.43, or 1.39 percent, to 742.01, and the Nasdaq composite index fell 20.15, or 1.53 percent, to 1,295.97.

The Russell 2000 index of smaller companies fell 13.93, or 3.62 percent, to 371.38.

Declining issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where volume came to 713.4 million shares. The expiration Friday of some options contracts for November could add to the market's volatility during the session, particularly in the final hour.

With the steep pullbacks this week, the Dow began Friday's session down 43.1 percent this year, while the S&P 500 index — a benchmark for the overall U.S. stock market — was down 48.8 percent. The Nasdaq composite index has lost 50.4 percent this year.

Bond prices fell Friday as credit markets eased somewhat following a freeze-up Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 3.19 percent from 3.00 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.03 percent from 0.01 percent late Thursday.

Light, sweet crude rose 17 cents to $49.59 on the New York Mercantile Exchange. The dollar was mostly lower against other major currencies, while gold prices rose.

The financial sector also led the market lower Thursday as investors worried that losses from souring debt will swamp banks, even those given financial support through the government's $700 billion rescue plan. Citigroup, in particular, is a concern for Wall Street because the company hasn't booked a profit in the past four quarters.

Investors have also worried about the fate of General Motors Corp., Ford Motor Co. and Chrysler LLC. The heads of the companies, warning that automakers are perilously low on cash, have been asking Washington for $25 billion in loans. But lawmakers have likely put off a vote on whether to extend a lifeline until next month and have asked the automakers for detailed plans about how they would use the money. The prospect of a bankruptcy filing by one or more of the companies has added to Wall Street's worries about the state of the economy.

In other corporate news, Wal-Mart Stores Inc. named Mike Duke, vice chairman of its international division, to replace Lee Scott as president and chief executive of the company when he retires in February. The stock added 70 cents, or 1.4 percent, to $51.36.

Jelly and jams maker J.M. Smucker Co. said Friday that its earnings rose 3 percent in its fiscal second quarter because of acquisitions and price increases. The stock rose $2.60, or 6.8 percent, to $40.85.

Overseas, Japan's Nikkei stock average jumped 2.70 percent. In afternoon trading, Britain's FTSE 100 fell 1.42 percent, while Germany's DAX index fell 1.49 percent, and France's CAC-40 slipped 1.93 percent.

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