Stocks extended losses on Friday with the S&P 500 and Dow industrials down more than 1 percent, weighed by rising oil prices and after a slight disappointment following the government's payrolls report.

A drop in bank shares following Bank of America Merrill's downgrade of Goldman Sachs and Citigroup also dragged equities lower.

The Dow Jones industrial average <.DJI> dropped 140.24 points, or 1.14 percent, to 12,117.96. The Standard & Poor's 500 Index <.SPX> fell 15.25 points, or 1.15 percent, to 1,315.72. The Nasdaq Composite Index <.IXIC> lost 23.73 points, or 0.85 percent, to 2,775.01.

(Editing by Kenneth Barry)