It has not been a good week for stocks. 

After yesterday's 350-point drop, the Dow Jones Industrial Average slipped another 100 points on Friday as oil continued to weigh on all parts of the market. The Dow is now officially in "bear market" territory, which is when a market is down more than 20% from its previous highs.

Today's Market

At the 4 p.m. close in New York, the Dow slid 104.71 points, or 0.91% to 11348.71, the Standard & Poor’s 500 index lost 4.68 points, or 0.36%, to 1278.47 and the Nasdaq Composite Index fell 5.74 points, or 0.25%, to 2315.63. The consumer-friendly FOX 50 dropped 6 points, or 0.67% to 892.65.

It would be an understatement to say the stock market has been in a rut during June. After touching the 13,000 mark as late as May 20, the Dow has plunged 1500 points as Wall Street has grown very pessimistic about the economy and very worried about energy prices and the health of major banks. It has erased 500 points just this week alone. 

If the Dow ends at this current level for the month, it would be the worst month since September 2002. It's also the worst June since 1930, according to data provided by Dow Jones. 

Citigroup (C) led the decliners on the Dow on Friday, tumbling again a day after Goldman urged shareholders to sell their stock. Other financial giants were falling also, with JPMorgan Chase (JPM) and Bank of America (BAC) posting modest losses. On the upside, Merck (MRK) rose 3% to lead the advancers on the Dow. 

Another financial that took a tumble was Morgan Stanley (MS), after Moody's said it was considering downgrading the investment bank's long-term debt. The rating agency said the bank's financial performance during these poor markets were "inconsistent." The stock is down 0.2% in late afternoon trading.

Tumbling tech stocks kept the pressure on the Nasdaq Composite on Friday, which fell further than the broader market. Ericsson (ERIC) led the way down on the Nasdaq 100 after its joint venture, Sony Ericsson issued a profit warning. Research in Motion (RIMM) fell sharply two days after its quarterly profit and outlook failed to impress shareholders.  

One of the major catalysts for the Thursday selloff -- record oil prices -- don't appear to be going away any time soon. Crude soared to another record of $142.99 a barrel, but retreated from those numbers. Oil rose $1.22 a barrel, or 0.87%, or $140.87. Gold futures gained $14.30 to $929.40 an ounce. 

Oil has been pushed higher as more experts predict even higher prices this summer and energy traders worry about supply disruptions. The pressure on oil has stepped up in recent days, as it has closed higher in five of the past seven days, jumping 4.2% over that span, according to Dow Jones. 

Wall Street received new evidence of how that surge in oil prices, which has resulted in $4 per gallon gasoline nationwide, has impacted the psyche of consumers. The Reuters/University of Michigan consumer sentiment index declined to 56.4 in June from 59.8 the month before. In addition to the energy prices, consumers have been worried about the general state of the economy, which teeters on the brink on a recession. 

Also, the Commerce Department said personal income soared by 1.9% last month. In fact, the government said the economic stimulus checks boosted after-tax incomes by 5.7% in May -- the largest increase since 1975. The stimulus checks also lifted consumer spending, which rose by 0.8% in May, the most since last November.  

The government also said PCE core inflation report rose by 0.1% in May, in line with expectations. Economists had expected more moderate increases in income. 

Financial stocks, one of the other major thorns in the market's side, were under more pressure on Friday. Merrill Lynch (MER) tumbled after Lehman Brothers predicted that the firm will need to write down $5.4 billion in the second quarter. Lehman also sharply raised its loss estimate to $2.78 per share, compared to a more modest 39 cent-loss estimates that analysts have forecasted. 

Corporate Movers

Anheuser-Busch (BUD) expects to cut its work force by 10% to 15% as a part of a broader plan to cut costs and stave off a hostile takeover from Belgian-Brazilian brewer InBev. The iconic American brewer rejected InBev's $46 billion buyout offer late Thursday even as InBev geared up for a proxy fight to oust A-B's board of directors. A-B called the InBev offer "inadequate" and said it can give shareholders greater value than the $65-per-share offer by remaining independent. 

Citigroup (C) is closing a distressed debt trading desk and pass off those responsibilities to a hedge fund, The Wall Street Journal reported.

JPMorgan Chase (JPM) was determined to be the most suitable bidder by the Federal Reserve in March when it acquired collapsing investment bank Bear Stearns in a fire sale deal, new Fed minutes show. Bear Stearns may not have even had enough cash to to meet the next day's business obligations, the March 14 and March 16 minutes show. The original and highly controversial $2-per-share offer price was not discussed in the Fed minutes. 

American Eagle (AEO) plunged to five-year lows after Oppenheimer downgraded the stock to "perform" from "outpeform," citing the loss of several executives and the weak U.S. economy. 

Palm (PALM) took a dive a day after the smart phone maker missed estimates with its fiscal fourth-quarter results. The company lost 40 cents per share on an adjusted basis, compared to a profit of 15 cents a year ago. Analysts polled by Thomson Reuters had been looking for a more modest loss of 18 cents. 

KB Home (KBH) fell sharply on the home builder's worse-than-expected quarterly results. The company posted an adjusted-loss of $2.03 per share, widely missing the average analyst estimate of 90 cents. KB Home's revenue plunged by more than 50% as the housing slump continues to take its toll. 

World Markets

The Dow Jones Euro Stoxx 50 Index, a gauge of the 50 biggest companies in Europe, fell 22.38 points, or 0.66%, to 3343.97. The FTSE 100, London's benchmark index, rose 4.10 points, or 0.07%, to 5522.30.

On the continent, Paris's CAC 40 Index lost 23.30 points, or 0.53%, to 4402.89 while Germany's DAX fell 33.02 points, or 0.51%, to 6426.58.

In Asia, Japan's benchmark Nikkei 225 Index fell 7.6 points, or 0.05%, to 13822.32. Hong Kong's Hang Seng Index fell 179.49 points, 0.79%, 22455.67.