Stocks Wrap Up Week With Another Loss

Stocks languished today, leaving Wall Street with another weekly loss as investors wait for signs an economic recovery will materialize this year.

A drop in crude oil prices and a slump in consumer confidence weighed on stocks. A three-month rally lifted stocks from a 12-year low. But traders are now waiting for the economy to stabilize enough to send stocks any higher.

The Dow Jones industrial average, an index of blue chip stocks, was down 0.5 percent, or 36.65 points, to close at 8146.52, while the broader Standard & Poor's 500-stock index fell 0.4 percent, or 3.55 points, to close at 879.13. The technology-heavy Nasdaq managed to close with a slight gain, up 0.2 percent, or 3.48 points, to close at 1756.03.

For the week, the Dow and S&P were down 1.6 percent and 1.9 percent, respectively. The Nasdaq lost even more, 2.2 percent.

Energy stocks led the losses after crude oil prices fell 52 cents, to settle at $59.89 a barrel on the New York Mercantile Exchange. After topping $70 a barrel last month, crude prices have tumbled on concerns that the economy may not recover as quickly as previously hoped. That dragged down shares of Exxon Mobil and ConocoPhillips, which fell 1.3 percent and 1.5 percent, respectively. Chevron's stock fell nearly 2.7 percent after warning of weak second quarter earnings.

Financial stocks also took heavy losses. Citigroup's stock tumbled 3.7 percent and J.P. Morgan Chase fell 3.8 percent.

Banks should report solid second-quarter earnings, Paul J. Miller, an analyst for FBR Capital Markets, wrote in a research note this morning. But the second half of the year remains uncertain with a weak labor market potentially hampering growth, he said. "We continue to remain cautious on most financials and would recommend that investors focus either on stocks with low exposure to weak legacy assets or stocks that are trading at or below book value," the note said.

Stocks were also weighed down by a drop in consumer confidence as measured by the Reuters/University of Michigan monthly index. The index showed a sharp decline partly because of reports showing the job market remains weak, Brian Bethune, chief U.S. financial economist for IHS Global Insight, wrote in a research note.

"The bottom-line is that consumers now perceive more storm clouds on the horizon than they did in the April to June period, a troubling retrenchment of consumer attitudes that will play out in the form of very weak consumer spending trends through the third quarter," he said.

Overseas markets were also weak. London's FTSE and the Dax in Germany were down 0.8 percent and 1.2 percent, respectively, while Japan's Nikkei was flat.