Stocks Snap Three-Week Losing Streak But Concerns Linger
NEW YORK (TheStreet) -- Stocks closed on a weak note Friday, as investors remained concerned about the mounting eurozone crisis heading into the holiday weekend.
A much stronger than expected final read on consumer sentiment failed to bring out the buyers as the headlines from across the pond were predictably dour, including news that the bailout tab for partially nationalized Spanish institution Bankia will be roughly $24 billion. In addition, Standard & Poor's moved to downgrade Spain's biggest banks amid the threat of a double-dip recession in the country.
Volumes were low with 2.86 billion shares trading on the New York Stock Exchange and only 1.2 billion in play on the Nasdaq.
The Dow Jones Industrial Average dropped 76 points, or 0.6%, to close at 12,454, after trading as high as 12,533.
Stocks did manage to break their three-week losing streak however, with the Dow adding 0.7% over the week. The S&P 500 gained 1.7% over the week, and the Nasdaq rose 2.1%.
Breadth within the Dow was negative with 22 stocks finishing lower, led by JPMorgan Chase(JPM) , Caterpillar(CAT) and Boeing(BA) . Basic materials, capital goods and transportation were the hardest-hit sectors.
Shares of JPMorgan fell 1.5%. CEO Jamie Dimon has been called to testify before the Senate on June 7 regarding the bank's massive trading loss. The bank continues to reel from the damage of the disclosure, with calls to break up the bank growing louder.
The worries about the fiscal health of Spain and the financial stability of its banking system flared up on Friday, causing the euro to retreat to a two-year low.