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NEW YORK (Reuters)-Wall Street fell for a third day Friday on concerns about the Italian banking sector and Greece's debt crisis, but the S P 500 & managed to keep its 200-day moving average to a still sign buyers see the value.
The Dow industrials and S & P 500 fell for their seventh week in the quarterfinals. The benchmark S & P 500 is down 7 percent from its closing high 2011 at the end of April.
Investors are fearful that the Government of Greece may fail to pass an austerity plan, the next week, which could force a default on its debts. The Government faces an electorate that vehemently opposed the austerity measures.
"They (politicians) cannot believe that financial markets are sensitive to their decisions as they really are, and there is a concern that somewhere along the line, some politicians vote goes against the market," said Nicholas Colas, Chief market strategist of ConvergEx Group in New York.
S & P 500 remained within the distance of its 200-day moving average-a line that was tested twice in business recently and so far has acted as a springboard for stocks. The level was 1, 263.47.
"Whenever there is a resistance or support level, become weaker," said Colas. "It's almost like a piece of metal. Every time you hit, it grows more fragile, and that's why people are really concerned about the third or fourth time. "
Problems of the eurozone appeared to intensify as the actions of the Italian UniCredit SpA Bank (CRDI.MI) and Intesa Sanpaolo (ISP.MI) clearly fell on concerns over their financial positions. Trading of their shares was briefly suspended.
The CBOE volatility index (.VIX or VIX), Wall Street barometer of investor anxiety, 9.4 per cent rose to 21.10. Some analysts say fear must rise further before the market reached a bottom.
The Dow Jones industrial average (.DJI) fell to 115.42 points, or 0.96%, up to 11, 934.58 at the end. the & 500 Index (Standard Poors.SPX) cadde 15.05 points or 1.17%, up to 1, 268.45. The Nasdaq Composite Index (.33.86 IXIC) lost 1.26% points or up to 2, 652.89.
For the week, the Dow fell 0.58% and the S P 500 & shed 0.24 per cent, while the Nasdaq gained 1.39 percent.
Bank stocks fell on concerns about the Economic Outlook. The KBW Bank index (.BKX) lost 1 percent and the S & P financial index (sector.GSPF) shed 0.7 percent. The sector was the worst performance this year, about 8 percent fall.
On Thursday, the market welcomed Greece's agreement to an austerity plan for five years.
The euro fell against the dollar for a third straight session on concerns the Parliament of Greece cannot pass austerity measures necessary for the country secure more funding.
In more recent economic data, new orders for durable manufactured goods the United States, known as durable goods, increased 1.9 percent in may after fall 2.7 percent in April as reservations for transportation of equipment rebounded strongly.
Oracle Corp. (ORCL.O) was down 4.1 percent percent to $ 31.14 (.NDX) one day after the software maker in the world no. 3 published disappointing results, especially in hardware sales. Oracle results widespread concerns about a slowdown in technology spending.
Micron Technology Inc. (MU) Or fallen 14.5 percent to $7,21 after the chipmaker memory registered results below expectations, late Thursday.
About 9.26 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq-well above the average so far this year of about 7.57 billion. Analysts said that the volume on Friday was much above average, due in part to the rebalancing of the Russell 2000 index (.TOY).
Declining stocks outnumbered advancing ones on the New York Stock Exchange in a ratio of 11 to 19. On the Nasdaq, three stocks fell for every two that rose.
(Reporting by Edward Krudy; Editing by Jan Pasquale)
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