U.S. stocks declined on Friday as oil held close to a record high, raising concern that higher energy costs will eat into corporate profits. Rising oil prices are generally negative for stocks, as they increase companies' expenses and reduce consumers' discretionary spending. Light sweet crude for August delivery was up 29 cents to $59.71 on the NYMEX market. "All eyes are watching oil contracts," said Kevin Beadles, managing director of institutional equity trading at Wedbush Morgan. "If it goes above $60 a barrel, you're going to see some panicking when that happens, according to Reuters. Consumer goods companies will be among the first to feel the squeeze of higher oil, Beadles said. Shares of Wal-Mart, the world's largest retailer, slid 0.6 percent to $47.59. Aluminum maker Alcoa Inc. announced 6,500 job cuts as part of a second phase of restructuring. The company already eliminated 1,800 workers this year. Shares of Alcoa dropped 2.7 percent to $26.46. The Dow Jones industrial average .DJI was down 31.00 points, or 0.30 percent, at 10,390.44. The Standard & Poor's 500 Index .SPX was down 2.34 points, or 0.19 percent, at 1,198.39. The technology-laced Nasdaq Composite Index .IXIC was down 2.14 points, or 0.10 percent, at 2,068.52. Guidant Corp. said it told doctors to stop implanting some of its defibrillators which may be recalled by U.S. regulators. --More 1756 Local Time 1456 GMT
