NEW YORK, Feb. 23 -- Stocks ended a lackluster week with a moderate decline Friday as higher oil prices worried investors and Treasurys rallied over concerns about a meltdown in the subprime mortgage market, in which companies offer loans to those with spotty credit.
It was the worst week for the Dow Jones industrials since mid-August, as the average fell 38.54, to 12,647.48. Broader stock indicators also fell. The Standard & Poor's 500-stock index fell 5.19, to 1451.19. The Nasdaq slipped 9.84, to 2515.10.
For the week, the Dow fell 0.94 percent, the S&P 500 fell 0.35 percent and the Nasdaq composite rose 0.75 percent.
The pullback followed several mixed sessions in which the tech-dominated Nasdaq composite index showed gains but blue chip stocks declined, in part because of inflation concerns. Bond prices rebounded from a sell-off a day earlier, as investors sought quality because of concerns that subprime lenders would be forced to book big write-downs because consumers would not be able to keep up with mortgage payments. The yield on the benchmark 10-year Treasury note fell to 4.67 percent from 4.73 percent Thursday.
"The defaults that you're seeing in the subprime market are a bit of a wake-up call for investors. I think you're going to see a continued flight to safety," said James Sonneborn, wealth manager at RegentAtlantic Capital.
Oil closed at its highest level of the year, eclipsing a year high set Thursday. Light, sweet crude settled up 19 cents at $61.14 on the New York Mercantile Exchange. For the week, oil prices were up 3 percent.
Movers Lowe'srose $1.30, $34.93, after it posted better-than-expected fiscal fourth-quarter results.
Nymex Holdingsfell 2.17, to $138.61. The operator of the New York Mercantile Exchange plans a secondary stock offering.
Microsoftfell 49 cents, to $28.90. A jury said the firm would have to pay $1.52 billion to Alcatel-Lucent in a patent-infringement case.
Tekelecfell $1.39, to $13.51, after issuing a disappointing 2007 forecast.
Exxon Mobilrose 14 cents, to $75.22.
ConocoPhillipsrose 32 cents, to $67.20.