MARKET SNAPSHOT: S&P 500 Finishes At Worst Level Since December 1996

By Kate Gibson

As stocks on Friday tallied another month of stiff losses, investors were especially focused on the S&P 500 Index, with the broad market gauge closing below its November lows -- and also below the 740-to-750 range some had hoped for.

"Only on a two-day close below 740 will I run for the hills. A close over 740 today would be considered a successful test of the November 2008 low," said Elliot Spar, market strategist at Stifel Nicolaus.

The S&P closed at 752.44 on Nov. 20, though the benchmark on Monday undercut that prior bear-market low. The S&P 500 (SPX) fell points to 17.74 points, or 2.4%, to 735.09, giving it a weekly loss of 4.5% and a monthly hit of 11%. The Dow Jones Industrial Average (DJI) shed 119.15 points, or 1.7%, to 7,062.93, leaving it with a weekly loss of 4.5% and a monthly decline of 11.7%.

"Hopefully we can get back to 800 on the S&P, but first we have to get past resistance at 752. If we can close above that one resistance level I think it would be a mild positive," said Robert Pavlik, chief market strategist at Banyan Partners LLC.

On Friday, financials led the declines, with Citigroup Inc. (C) down 39% on news the U.S. government was hiking its stake in the battered bank. .

The technology-laden Nasdaq Composite (RIXF) fell 13.63 points, or 1%, to end at 1,377.84, down 4.4% for the week and 6.7% for February.

February falls

LATIN AMERICAN MARKETS: Mexican Peso Hits Low As Banking Concern's Fate Is Weighed

By Carla Mozee

Mexico's currency on Friday stumbled to a new all-time low, pressured by concerns about the fate of Banamex, one of the country's largest banks, after the U.S. government agreed to raise its stake in its troubled parent firm, Citigroup Inc.

Across the region, equities were mixed but still on track to post losses for the week and the month.

Mexico's currency pierced through the psychological level of 15 pesos per U.S. dollar, reaching a low of 15.217 after the U.S. agreed to raise its stake in troubled bank Citigroup Inc. (C) to 36%.

Citigroup owns Banamex, Mexico's second-largest bank measured by asset. Market players are watching for word that Citi may have to give up a portion or all of Banamex. Mexican law prohibits banks in the country to be run by any entity that is owned by a foreign government or sovereign wealth fund.

"The officials in Mexico are still trying to figure out a solution," said Nick Chamie, global head of emerging markets research at RBC Capital Markets.

MARKET SNAPSHOT: Stocks Look To New Lows As March Begins

By Nick Godt

With the market slumping to fresh 12-year lows in the last stretch of February, stocks will kick off the month of March on an increasingly uncertain footing while investors try to determine where the bottom lies for the economy and the bear market alike.

"The path to least resistance remains down," said Alec Young, market strategist at Standard & Poor's. "We need some real capitulation, and for people to stop buying the dips and let it crash. Then, we could get a new low."

Data on U.S. employment and nonfarm payrolls, due next Friday, might get the ball rolling.

"Everyone knows it's going to be bad," Young said. "But we need even the most bullish people to give up and [the jobs report] might be the catalyst."

February sees more record losses

Friday closed the chapter on the worst February since 1933, with the broad Standard & Poor 500 index (SPX) down 10.9% for the month. The S&P thus stands down 18.6% in the year to date, making for the worst first two months of a year on record.

On Friday, the S&P finished at 735, its worst level since December 1996, after U.S. gross domestic product in the fourth quarter was revised sharply down to negative 6.2%.