The Dow Jones Industrial Average dropped128.43 points, or 1.26%, to 10070.37. The Standard & Poor's 500-stock index lost 13.13 points, or 1.14%, to 1143.03. The Nasdaq Composite Index, heavy with tech companies, fell 26.25 points, or 1.36%, to 1904.18.

High oil prices play an important part to discourage the optimism on Wall Street. On the New York Mercantile Exchange, oil prices climbed 16 cents to $51.77 a barrel after briefly dipping below $50. Wednesday, crude lost more than $2 due to news of increasing oil supplies.

In spite of its recent drop crude is still expensive. The aftereffect is a sliding U.S. economy, as the government report announced Thursday. GDP advanced at a 3.1% annual rate in 1Q - the slowest pace in two years and fell short of economists forecasts for a 3.5 percent pace. GDP grew at a 3.8% rate in the 4Q of 2004.

Asian-Pacific stock markets were lower Friday as slower-than-expected U.S. GDP data for 1Q added to worries over the global economy.

The Korea Composite Stock Price Index, or Kospi, was down 3.85 points, or 0.4%, at 913.88. China Shanghai Composite Index was up 0.1% at 1170.03. The Shenzhen Composite Index lost 0.2% at 287.36. The Stock Exchange of Thailand index dropped 1.57 points, or 0.2%, at 657.67 points.
Hong Kong's Hang Seng Index was down 0.5% at 13831.74.

Markets in Japan were closed for Greenery Day.

European oil and automaker stocks helped markets on Friday with Bayer AG among the gainers after posting a 55.6% jump in quarterly earnings.

Germany's DAX 30 index advanced 0.2% to 4,183; France's CAC 40 Index slid 0.1% at 3,907; London's benchmark FTSE 100 index, added 0.1% to 4,795, boosted by gains in the oil sector.

In shares, oil stocks gained as crude oil futures remained well above $51 a barrel, after falling through the $50 level on Thursday.

The U.S. dollar weakened vs. the euro and the British pound Friday. The euro bought US$1.2959 in early European trading, down from US$1.2895 in New York late Thursday. The British pound bought US$1.9134, up from US$1.9066.

The dollar also slipped against the Japanese currency, falling to 105.16 yen from 105.99 yen.

The dollar dropped to its lowest level vs. the yen in more than a month as investors worried about prospects of a revaluation of the Chinese yuan and discouraging U.S. growth. The dollar traded at its lowest level since March 22 at 105.04 yen.

In Other News:

Bush offers new social security plan
Microsoft misses viiews with profit jump
Jobless claims meet forecasts
March durable goods sink
Airlines Sign on with G2