US STOCKS-AIG's loss and record oil sour Wall St mood

(Updates to 4 p.m.)

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc (AIG.N: Quote, Profile, Research, Stock Buzz) reported a massive loss.

The Dow Jones industrial average .DJI fell 120.90 points, or 0.94 percent, to end unofficially at 12,745.88 and the Standard & Poor's 500 Index .SPX dropped 9.39 points, or 0.67 percent, to finish unofficially at 1,388.29. The Nasdaq Composite Index .IXIC slipped 5.72 points, or 0.23 percent, to close unofficially at at 2,445.52.

For the week, the Dow fell 2.4 percent, the S&P 500 dropped 1.8 percent and the Nasdaq slipped 1.3 percent. (Reporting by Chris Sanders; Editing by Jan Paschal)