US stocks fell on Friday as major oil company stocks slid following a drop of nearly $2 a barrel in crude oil and after software maker Oracle Corp posted a lower profit. For the week, the Dow rose O.90 percent, the S&P 500 edged up 0.63 percent and Nasdaq dipped 0.19 percent.
Volume was heavy, with more than 2 billion shares traded on each the New York Stock Exchange and Nasdaq, and the market was volatile as traders rolled forward or exited positions with the expiration of December futures and options contracts, known as "quadruple witching."
Lower oil pulled down shares of Chevron Corp, which fell 2.6 percent to $57.51 and Exxon Mobil Corp, which slid 2.4 percent to $58.06. US crude dropped $1.93 to $58.06 a barrel on forecasts for milder weather.
After the closing bell, shares of drug maker Pfizer Inc rose 11.6 percent after a federal judge upheld the validity of two key US patents on Pfizer's Lipitor cholesterol drug. Pfizer shares were trading at $25.28 on the Inet electronic brokerage network after closing at $22.58 on the NYSE.
During the regular session, shares of Johnson & Johnson, a component of the blue chip Dow average, rose 1.2 percent to $60.86 after the maker of drugs and medical devices said it would buy insulin delivery company Animas Corp Animas shares jumped 32 percent to $24.03 on Nasdaq.
The Dow Jones industrial average was down 6.08 points, or 0.06 percent, at 10,875.59. The Standard & Poor's 500 Index was down 3.62 points, or 0.28 percent, at 1,267.32. The technology-laced Nasdaq Composite Index was down 8.15 points, or 0.36 percent, at 2,252.48.
For the year the Dow has risen 0.86 percent, the S&P is up 4.57 percent and the Nasdaq has gained 3.54 percent.
"We're slightly lower to unchanged basically for the second day in a row after a little bit of a rally. That 11,000 continues to be a key resistance area," said Larry Peruzzi, senior equity trader at The Boston Company Asset Management.
A big drop in oil dragged down energy shares, he said. "If it (the drop) comes in modestly, it's OK because some of the oil users - the autos, transports, airlines - will do better, but as it comes in 2 percent or more the energy stocks go down."
Oracle shares slid 1.1 percent to end at $12.69. The stock cut its losses from as much as 4.8 percent earlier after a rating upgrade by Merrill Lynch.
United Technologies Corp rose 0.8 percent to $58.03 after CIBC raised its rating on the conglomerate, citing strong confidence in 2006 growth.
Shares of General Motors Corp slid 1.1 percent to $21.89 on the NYSE. Citigroup Inc's chief executive said it was hard for him to see the largest US bank buying General Motors Acceptance Corp, financing unit of the world's largest automaker. ID:nN16334385. Toward the end of the year "you're going to see a lot of big winners get sold to take profits and some bottom-fishing for some of the beaten-down stocks," said Jeffrey Saut, Raymond James Financial's chief investment strategist.
About 2.09 billion shares changed hands on the NYSE, well above last year's daily average of 1.46 billion, while on Nasdaq about 2.42 billion shares traded, above last year's daily average of 1.81 billion.
The Nasdaq Stock Market's rebalancing of its Nasdaq-100 index added further to volume and volatility.
Declining stocks were slightly above advancing ones on the NYSE, while on Nasdaq, the number of stocks that fell beat those that rose by about 8 to 7.
Other decliners on the Nasdaq included for-profit education company Apollo Group Inc, whose shares fell 3.5 percent to $63.61 a day after it lowered its 2006 revenue forecast.
Advancers on the Nasdaq included Adobe Systems Inc, which rose 11.1 percent to end at $38.82 on Nasdaq a day after the maker of design software posted quarterly profit that topped expectations.