Wall Street extends losses in volatile week

NEW YORK - Wall Street ended a depressing week with another big loss on Friday, with the Dow Jones industrials falling more than 100 points amid ever-escalating worries about high oil prices and credit crisis fallout. The major indexes are all down more than 3 percent for the week.

The Dow has fallen nearly 460 points in the last two days and reached its lowest point since September 2006.

Investors again contended Friday with a seemingly relentless stream of troubling news about the financial sector. Moody's Investors Service said it is reviewing investment bank Morgan Stanley for a possible downgrade. There were also more reports that Merrill Lynch & Co. might have to write off nearly $6 billion of risky mortgage-backed debt.

In addition to anxiety about the financials, the market watched oil's march higher - the price of crude rose to a new record of $142.99 a barrel on the New York Mercantile Exchange. Wall Street remains concerned that higher commodity prices will slam consumer s with not only elevated costs for energy and food, but also for other goods if cash-strapped companies decide to pass along the rising costs.

"People are trading with a lot of emotion," said Alexander Paris, an economist and market analyst for Chicago-based Barrington Research.

"I think the market is trying to m ake a bottom, but the question is, will it hold there or just crash through? "It feels just like the top of the technology bubble in 2000: you know there's something wrong, but it is hard to time it."

Investors got little solace from economic data released Friday. The Commerce Department said spending rose 0.8 percent in May, as taxpayers started receiving stimulus checks, higher than the 0.7 percent economists predicted. The report also said personal incomes surged 1.9 percent - much more than anticipated. After taxes, incomes surged 5.7 percent, the largest amount in 33 years.