(MENAFN- ProactiveInvestors) U.S. stocks plunged Friday amid weak economic data and a decline in oil prices with major averages set to record sharp weekly losses for the third week in a row.
As of noon in New York the Dow Jones Industrial Average was down 222 points at 17676 while the Nasdaq fell 43 points to 4850 and the S&P 500 lost 20 points to 2046.
Kicking off the economic calendar Friday the government reported the producer price index for February dropped 0.5% the fourth straight decline despite the gas price increase. Core PPI minus the volatile food and energy categories was flat in February. Forecasts were calling for a 0.3% increase in producer prices and a 0.1% rise in core PPI.
The surprise drop indicates persistent deflationary pressures. Meanwhile the preliminary March University of Michigan consumer sentiment index fell in March by more than forecast to a reading of 91.2. Economists were expecting a reading of 96.0.
Investors will be looking for hints next week about the central bank tightening its monetary policy at Fed chairwoman Janet Yellen's news conference which will take place after the Fed meets on Tuesday and Wednesday.
European markets turned mixed on Friday with shares in London off. Asian markets ended higher with Japanese stocks finishing above the 19000 level the highest since June 2000.
Oil prices in New York dropped $1.59 to $45.46 a barrel after the International Energy Agency said oil prices might have only stabilized temporarily as the global crude glut is worsening and U.S. production shows no signs of slowing. It also said the U.S. may soon run out of spare capacity to store crude and forecasts the process will last at least until the second half of 2015. Gold futures edged up $1 to $1153 an ounce in New York.
In corporate activity Ann Inc () climbed almost 8% after the retailer posted a surprise profit and better-than-expected sales.
() shed over 18% after forecasting a wider-than-expected loss in the current quarter due to weaker traffic. The company beat estimates on earnings and revenue in its latest quarter however.
In other news federal prosecutors and the FBI are reportedly investigating potential manipulation of 's () stock and are interviewing people hired by Bill Ackman who has campaigned against the company for the past three years.
GM () has recalled about 64000 Chevrolet Volt hybrid electric cars to prevent carbon monoxide build-up when a driver forgets to shut off the vehicle.
() has announced its pain drug Lyrica did not meet defined goals in a study that tested for its effectiveness in treating adolescents with fibromyalgia. Shares fell 0.6% on Friday.
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