Dow, S&P End Lower for 7 Out of 8 Weeks

Stocks ended lower Friday with the Dow and S&P closing down for the seventh week out of eight amid continuing jitters over the euro zone debt crisis.

The Dow Jones Industrial Average fell 115.42 points, or 0.96 percent, to end at 11,934.58. Among the blue-chip index, Boeing was the biggest laggard for the week, while DuPont rose.

The S&P 500 slumped 15.05 points, or 1.17 percent, to 1,268.45, near its 200-day moving average of 1,263.

The tech-heavy Nasdaq slipped 33.86 points, or 1.26 percent, to end at 2,652.89.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped almost 10 percent to finish at 21.15.

For the week, the Dow declined 0.58 percent, the S&P shed 0.24 percent, while the Nasdaq gained 1.39 percent—snapping a five-week losing streak.

Consumer staples was the biggest sector laggard for the week while materials climbed.

Volume was on the heavier side with the consolidated tape of the NYSE at 4.80 billion shares, while 1.74 billion shares changed hands on the floor.

The Russell indexes are scheduled to rebalanceafter the close. Russell rebalancing happens typically on the last Friday of June every year. This year's adjustments is likely to boost the weighting of tech and health care stocks.

"We're tumbling because the market is very jittery about the passing of the Greek austerity vote," said Boris Schlossberg of GFT Forex.

Five-year credit default swaps (CDS) on Greek government debt increased 50 basis points to near 2,330. Gold tumbled to settle near $1,500.90 an ounceas the euro fell to a session low against the dollaramid concerns over Greece.

On Thursday, Greece won consent from a team of EU-IMF inspectorsfor a five-year austerity plan after committing to an additional round of tax rises and spending cuts. The Greek Parliament is expected to vote on the austerity plan next week.

Italian banks UniCredit and Intesa Sanpaolofell sharply and were briefly haltedamid pressure from Europe's debt crisis. The news comes after Moody's warned of a downgrade on Italian banks Thursday.

Meanwhile, European banks RBS, Barclays and DeutscheBank declined.

Deutsche Bank cut its second-quarter earnings estimates on Goldman Sachs and Morgan Stanley to $2.10 a share from $2.55 and 38 cents a share from 42 cents, respectively. Shares of both banks slipped.

Among earnings, Oracle slipped as analysts worried over a slowdown in tech spending, even after the business-software maker posted higher than expected results. Meanwhile, Canaccord raised its price target on the firm to $38.

Micron plunged almost 15 percent to lead the S&P laggards after the chipmaker's results disappointed analysts and it warned of low visibility in a weak consumer PC market. In addition, at least eight brokerages cut their price targets on the firm. Rivals Nvidia and Taiwan Semi were also lower.

Meanwhile, Accenture gained after the tech outsourcing firm posted a profit that beat estimates and raised its earnings forecast.

Pfizer and Pain Therapeutics declined after the FDA rejected the pharma giants' painkiller Remoxy.

Williams made an unsolicited $4.9 billion cash bidfor Southern Union topping the pipeline company's $4.1 billion stock deal with rival Energy Transfer Equity .

Comcast slipped even after after Goldman Sachs added the parent company of CNBC to its "conviction buy" list.

Oil prices were volatile, but finished lower for the weekwith U.S. light, sweet crude down $2.24 to settle at $91.16 a barrel, while London Brent crude declined $8.09 to settle at $105.12. Oil tumbled after the IEA announced it will release 60 million barrels of government-held stockearlier this week.

Meanwhile, IEA Executive Director Nobuo Tanaka told CNBC that the agency is ready to release more oil and that it sometimes "had to bite."

Airlines gave back the previous session's gains with Delta and United Continental tumbling broadly. United Continental warned about second-quarter revenues and UBS cut its price on the airline giant to $36 from $39.

The benchmark 10-year U.S. Treasury note rose 11/32, erasing an earlier loss. Its yield eased to 2.87 percent, closing at its lowest point since Nov. 30, 2010.

On the economic front, durable goods rose more than expected in May as bookings for transportation equipment rebounded strongly.

Meanwhile, GDP was revised modestly higher to 1.9 percent in the first quarter, according to the Commerce Department, up from the previously estimated 1.8 percent, in line with expectations.

“This is very much like last year when we had the slow patch,” according to Scott Brown, Chief Economist at Raymond James, adding that the economy will avoid going through a doubled-dip, but growth is still likely to be very slow.

In the second half of the year, Brown expects gasoline prices to pare back and bank lending to increase to small businesses, which will be favorable for consumers.

European shares closed lower for the eight week amid uncertainties over Greece's debt crisis and after shares in two Italian bank shares fell sharply.

Coming Up Next Week:

MONDAY: Personal income & spending, Fed's Kocherlakota speaks, Fed's Hoenig speaks, 2-yr note auction; Earnings from Nike
TUESDAY: S&P Case-Shiller home price index, consumer confidence, 5-yr note auction, IMF board to select new chief
WEDNESDAY: Weekly mortgage apps, pending home sales index, oil inventories, 7-yr note auction, farm prices, Dell analyst meeting, Fed meeting on card fees; Earnings from Family Dollar, General Mills, KB Home, Monsanto
THURSDAY: Weekly jobless claims, Fed's Bullard speaks, Chicago PMI, End of QE2, Marathon Oil split takes place
FRIDAY: Consumer sentiment, ISM mfg index, construction spending, Biden's deadline for deficit plan, HP launches TouchPad, auto sales

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