US stock market continues downward path 11th nov

Stocks in U.S. tanked for a fourth day out of five on Friday, ending a forgettable week that saw financial stocks being hammered due to growing subprime problems and the technology heavy Nasdaq Composite Index losing almost 7%. Wachovia Corp, the nation's fourth-largest bank, said in a regulatory filing that it expects loan losses of as much as $600 million in the fourth quarter. This sparked further selling of embattled financial stocks.

The Dow Jones Industrial Average lost another 223.5 points, or 1.7%, to 13,042.7, giving it a weekly drop of nearly 4%. Of the Dow's 30 components, 24 ended in the red, led by IBM Corp. and General Motors Corp. both of them losing about 5.5%. The S&P 500 Index also fell 21.07 points, or 1.4%, to 1,453,70, dropping 3.7% for the week.

Despite an unexpected decline in the U.S. trade deficit in September, which the Commerce Department attributed to a surge in exports, investors chose to focus on the negative news. The U.S. dollar continued its downward path, dropping about 1.75% against the Japanese yen as financial woes on Wall Street took their toll on stocks. A bleak consumer sentiment survey further raised concerns about U.S. economic growth. The consumer sentiment index released by Reuters and the University of Michigan is now at its lowest level in 13 months. The decline in consumer sentiment could lead to a grim holiday sales season for retailers.

The Nasdaq Composite Index fell 68.06 points, or 2.5%, to 2,627.94.
The technology-heavy index has declined 6.5% since last week as the tech sector experienced another sell-off session.

Even the high-flying Google Inc. was not spared, with the Internet search engine dropping 4.2% to $663.50, down sharply from the intraday high of $747.24 hit just two days.

In commodities market, oil futures saw volatile trading before closing up 86 cents at $96.32 a barrel amid concerns about supply problems and the weakening U.S. economy.
Gold futures finished slightly lower, down $2.80 to $834.70 an ounce, but still posted a gain of more than $26 on the week, as U.S. dollar weakness continues to provide support for Gold prices.