INSTANT VIEW: Dow industrials enter bear market territory

NEW YORK (Reuters) - The Dow Jones industrial average .DJI slid on Friday into bear market territory as investors fretted about the impact of record oil prices and mounting credit losses in the financial sector.

To confirm a bear market cycle, or prolonged period of falling stock prices, the index needs to end the session at least 20 percent below its closing peak, reached in October.

KEY POINTS: * The Dow was down 124.98 points, or 1.09 percent, at 11,328.44, which was 20 percent below its record close on October 9, 2007.

COMMENTS:

MATTHEW STRAUSS, SENIOR CURRENCY STRATEGIST, RBC CAPITAL

MARKETS, TORONTO:

"It highlights the severity of the problems in the U.S. We had what now almost looks like a dead cat's bounce after the Bear Stearns bail out, but the underlying problems in both the U.S. financial sector and the economy are still very much with all of us. It sets the dollar up for a challenging week, we are getting a number of U.S. data releases. If we get weaker than expected jobs data, with the ECB hawkish or indicating there might be more rate hikes after Thursday's hike, in this environment, there is a likelihood that we could retest the 1.60 level (on euro/dollar)."

CHRIS ORNDORFF, HEAD OF EQUITY STRATEGY, PAYDEN & RYGEL, LOS

ANGELES:

"I'd say we've been in a bear market for a while. I don't think the bear market is just starting. If you didn't think we were in a bear market in January, you must not have been awake."

JIM VOGEL, INTEREST-RATE STRATEGIST, FTN FINANCIAL, MEMPHIS,

TENNESSEE:

"Treasuries are up on somewhat thin volume. We are going to need to reconfirm these levels after the holiday week and after we see nonfarm payrolls. The reaction (in Treasuries) makes sense but it's too soon to call this a reversal of the last three months. Anybody that has to buy is dealing with some illiquidity and people unwilling to short the market because you have quarter-end, holiday staffing, an important economic number and (Fed Chairman) Bernanke speaking in July."

BRUCE ZARO, CHIEF TECHNICAL STRATEGIST, DELTA GLOBAL ADVISORS,

BOSTON:

"I keep an eye on the Dow, but it's more of a psychological indicator that its in a bear market. What's driving this is, I believe a worry about second quarter GDP and earnings.