Oil prices again pressured the market, casting doubt not only on fourth-quarter earnings, but also on the health of the economy as a whole. A barrel of light crude was quoted at $55.17, up 70 cents, on the New York Mercantile Exchange.

"These oil prices are really going to bite the consumer at some point. Heating oil is up, it's supposed to be a very cold winter in the Northeast, and lower and middle income people are going to pay," said Russ Koesterich, U.S. equity strategist at State Street Corp. "Combine that with a total lack of fundamentals in the big name stocks, and there are very few places left to hide for investors."

Shares of Google surged in early trading as the online search giant doubled both revenues and profits from a year ago. Like its initial public offering two months ago, Google was one of the few bright spots in an otherwise depressed market.

According to preliminary calculations, the Dow Jones industrial average fell 107.95, or 1.1 percent, to 9,757.81, setting a new low for the year to date and posting its lowest reading since Nov. 24.

Broader stock indicators also were substantially lower. The Nasdaq composite index lost 38.48, or 2 percent, to 1,915.14, its biggest one-day drop since Aug. 6. The Standard & Poor's 500 index was down 10.75, or 1 percent, at 1,095.74, its lowest close since Aug. 23.

The Dow and S&P 500 lost ground for the third straight week, as the continued rise in oil prices and middling earnings reports again sapped confidence from investors. A wait-and-see attitude also pervaded the market, with major economic reports, including the first reading of the third quarter's gross domestic product, and the presidential election looming.

However, the Nasdaq managed a slim gain as technology earnings outpaced those of other sectors.

For the week, the Dow lost 1.77 percent, and the S&P dropped 1.12 percent, while the Nasdaq gained 0.19 percent.

Google's earnings impressed analysts, with Prudential raising the company's target stock price to $200 early today. Google skyrocketed $23.05, or 15.4 percent to $172.43, but other major technology stocks stole any momentum Google might have generated.

"You've got one darling here surrounded by a bunch of less-than-hopefuls, and that's not going to boost anything other than the darling," said Bryan Piskorowski, market analyst at Wachovia Securities. "With oil up and nobody really stepping out with earnings other than Google, we're sliding here."