By Ryan Vlastelica
NEW YORK (Reuters) - Stocks fell on Friday, following the Dow's eight consecutive days of gains as a rising dollar hurt oil prices and weighed on energy stocks.
Renewed worries about Greece's debt problems sent the euro to more than a two-week low against the greenback. The stronger dollar, in turn, hit the price of dollar-denominated commodities such as oil and gold because it makes them more expensive for holders of other currencies.
"Uncertainty over Greece is pushing the dollar higher, and the recent gains we've seen in the commodity space is because the dollar has been depreciating," said Joe Arsenio, president of Arsenio Capital Management in Larkspur, California.
That effect spilled over to energy stocks, with
A looming congressional vote to overhaul the U.S. healthcare system will keep health-sector stocks in focus, with the Morgan Stanley Healthcare Payor index (^HMO - News) up 2.1 percent. In addition,
"That
Traders work on the floor of the New York Stock Exchange, February 5, 2010. REUTERS/Brendan McDermid
The Dow Jones industrial average (^DJI - News) dropped 55.02 points, or 0.51 percent, to 10,724.15. The Standard & Poor's 500 Index (^SPX - News) fell 6.70 points, or 0.57 percent, to 1,159.13. The
The top drag on the Dow was 3M Co (MMM - News), which fell 2 percent to $81.99, erasing gains made in Thursday's sessions, when it was one of the Dow's top gainers.
Weighing on the
SunPower Corp (SPWRA - News) sank 15.1 percent to $18.72 a day after it gave a weaker-than-expected profit outlook for 2010, prompting a number of analysts to cut their price targets on the stock.
Electronics retailer Best Buy (BBY - News) climbed 1.7 percent to $41.14 after
Regarding Greece and its huge debt burden, the European Union's monetary affairs chief urged the bloc's leaders to agree on a standby aid package for Greece next week. But investors fear German reluctance could hinder the effort.
"The near-term market outlook is cautious because there are still so many uncertainties about Greece," Arsenio said.
Volume has been thin during the week and volatility has dropped considerably. The CBOE Volatility Index (^VIX - News) is down roughly 5 percent this week and hit its lowest mark since May 2008.
Friday marks the second day of a convergence known as quadruple witching, when four types of options and futures contracts expire, possibly triggering volatility and higher volumes.
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