U.S. stocks finished lower on Friday, with the Dow Jones ending below 12,000 for the first time in three months and the Nasdaq erasing all of its gains for the year. In world markets, European stocks finished lower, as the CAC 40 in France lead losses with a 1.9 percent decline. Asian markets ended mixed, with the Nikkei in Japan rising 0.5 percent and the Hang Seng in Hong Kong falling 0.8 percent. Meanwhile, China reported a $13.05 billion surplus in May, up from its $11.4 billion surplus recorded in April, the Chinese General Administration of Customs said Friday. In U.S. economic news, import prices rose for an eighth consecutive month in May, the Labor Department reported. The department said that import prices rose 0.2 percent last month, beating forecasts of a 0.7 percent decline and following April's 2.1 percent rise. A separate government report showed that the U.S. federal budget deficit is nearing the $1 trillion mark for a third consecutive year. The Treasury Department reported that the federal budget deficit for May was $57.6 billion and $927.4 billion for the first eight months of the fiscal year. In U.S. company news, online radio company Pandora Media increased the proposed value of its initial public offering (IPO) by almost 50 percent. The company is seeking to raise $161.5 million, representing 14,684,000 shares priced at $10 to $12 each. Last week, Pandora said in a filing that it planned to raise $109.5 million with the sale of 13,684,000 shares offered at $7 to $9 each. The U.S. dollar rose versus the euro but fell versus the yen. Light sweet crude oil for July delivery fell $2.64 to $99.29 a barrel on the New York Mercantile Exchange. Gold futures fell $13.50 to $1,529.20 an ounce. The Dow Jones industrial average fell 172.45, or 1.4 percent, to 11,951.91. The broader Standard & Poor's 500 index fell 18.02, or 1.4 percent, to 1,270.98. The technology-heavy Nasdaq composite index fell 41.14, or 1.5 percent, to 2,643.73.
