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DJIA Commentary : Wall Street Stocks Extend Weekly Losses, Led By HP

Wall Street suffered another day of losses on Friday, adding to the sharp sell-off seen during the previous session.

Stocks attempted to rebound following the dismal losses posted Thursday. The rally was short-lived, however. The major averages peeked into positive territory during the morning, but last ground during the final stages of the session as traders showed reluctance to hold long positions into the close.

The Dow finished lower by 173.01 at 10,817.57, down 4 percent from last Friday's close. The S&P dropped 17.12 points, or 1.50 percent, to 1,123.53. Nasdaq Composite fell 38.59 points to 2,341.84, pacing the weekly slide with a loss of 6.6 percent over the past five sessions.

The major averages in the U.S. have fallen four weeks in a row.

JPMorgan Chase & C slashed its U.S. growth forecasts, predicting that gross domestic product will grow 1 percent in the fourth quarter rather than the 2.5 percent previously forecast and 0.5 percent in the first quarter of 2012 instead of 1.5 percent.

HP shares tumbled more than 20 percent to a six-year low after announcing restructuring plans and a pessimistic forecast.

Dell shares rose 1.75 percent. Elsewhere in the tech sector, Intuit Inc. jumped 8.3 percent the software company forecast earnings above expectations.

Bank of America Corp. is cutting 3,500 jobs in the current quarter and also plans a broader restructuring that could eliminate thousands of positions, the Wall Street Journal reported Thursday, citing people familiar with the situation. Shares were down 1.14 percent.

Crude oil futures finished a wishy-washy session modestly lower today, as reports that Muammar Gaddafi may be leaving Libya bolstered hopes for ramped-up production. Earlier in the session, black gold traded north of breakeven, as a softer greenback lured foreign-currency holders to the dollar-denominated commodity. By the close, September-dated crude futures gave up 12 cents, or 0.2%, to end at $82.26 per barrel. For the week, the front-month contract surrendered 3.7%.

Gold futures, meanwhile, found another new record today. Another sell-off in the equities market whetted traders' collective appetite for safe havens, sending December-dated gold futures as high as $1,881.40 an ounce in intraday trading. By the close, the contract added $30.20, or 1.7%, to end at a new record settlement of $1,852.20 an ounce. For the week, the malleable metal advanced 6.4%, bringing its month-to-date ascent to a jaw-dropping 14%.

Levels to Watch in Trading:

Dow Jones Industrial Average (DJIA – 10,817.65) - support at 10,500; resistance at 13,000

S&P 500 Index (SPX – 1,123.53) - support at 1,100; resistance at 1,400

Nasdaq Composite (COMP – 2,341.84) - support at 2,100; resistance at 2,900

Hold Your Seat Belt For Any Pendulum Swing On Next Week

Next week will see the release of another batch of key economic reports and a highly-anticipated speech by Federal Reserve Chairman Ben Bernanke at the Fed's annual Jackson Hole symposium.

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