Wall Street endures a brutal Friday the 13th

DJIA Takes 100-Point Hit as Euro Zone Fears Dominate; Major indexes down for the week
It was an unlucky Friday the 13th for investors, with the major market indexes taking a hit on fresh concerns about the fiscal health of the euro zone. Early optimism over solid GDP growth in Germany and France evaporated in the wake of a grim warning from European Central Bank official Juergen Stark, who asserted that a bailout of Greece would hardly be a cure-all. "I would warn against underestimating the massive harmful effects a debt restructuring would cause for the country involved and for the euro zone as a whole," said Stark. "It is very well conceivable that the risks for financial market stability could spread to other European countries." With cash-strapped Greece grabbing the spotlight, Wall Street seemed utterly uninspired by a generally decent round of domestic economic data, including in-line inflation figures and a stronger-than-forecast reading on consumer sentiment. Instead, traders cast a wary eye on a key meeting of euro zone finance ministers scheduled for Monday, and ultimately opted to take some cash off the table ahead of the weekend.

The Dow Jones Industrial Average (DJIA – 12,595.75) ended on a drop of 100.2 points, or 0.8%, as all but five of its 30 components ended lower. Travelers Companies (TRV) led the 25 laggards with a 2.4% pullback, while Kraft Foods (KFT) led the four advancing blue chips with a gain of 0.4%. Wal-Mart Stores (WMT) split the difference by finishing flat. Today marks the Dow's first close below its 20-day moving average since April 19, but the index remains well north of support at its rising 10-week trendline. For the week, the Dow gave up 0.3%.

The S&P 500 Index (SPX – 1,337.77) gave up 10.9 points, or 0.8%, and breached its own 20-day moving average for the first time in nearly a month. The Nasdaq Composite (COMP – 2,828.47) suffered the session's largest percentage drop, shedding 34.6 points, or 1.2%, by the time the closing bell sounded. In the process, the COMP ended less than one point below its 20-day trendline. The SPX declined 0.2% for the week, while the COMP barely budged, up just 0.03% from last Friday's close.

ANALYST QUOTES
“There’s a lot of question marks to the economic recovery at the same time the Fed is about to take [quantitative easing two] away, and just like with any drug addict, there’s a period of withdrawal.”

“Now that earnings season is behind us, there is currently no good news to push stocks higher until we start to get the next quarter’s expectations, which should be very good.” 

Crude fight back in late trading
Crude futures eked out a last-minute gain today, but settled just south of the psychologically significant century mark. The U.S. dollar's rise against the euro kept black gold under pressure for most of the session, but the threat of refinery disruptions along the swollen banks of the Mississippi River helped generate some minor buying interest ahead of the weekend. Crude oil for June delivery added 68 cents, or 0.7%, to end at $99.65 per barrel. For the week, the contract gained 2.5%.

HAPPY WEEKEND