Wall Street suffers worst week in 2 months on Europe woes

US stocks posted seven straight sessions of losses on Friday, ending the worst week in two months, as the lack of a credible solution to Europe’s debt crisis kept investors away from risky assets. Wall Street traded higher for most of the abbreviated session on hopes that “Black Friday,” the traditional start of the US holiday shopping season, would support major retailers. But gains were quickly offset by headlines out of Europe that further dented market sentiment. With less than 20 minutes before the close, all three stock indexes had turned negative. Yields on Italy’s debt approached recent highs that sparked a sell-off in world markets. Italy paid a record 6.5 percent to borrow money over six months on Friday, and its longer-term funding costs soared far above levels seen as sustainable for public finances. High debt yields from major economies in Europe such as Spain, France and Germany suggest investing in the region is seen as being more risky. “Trading remains cautious (since) the poor auction of German bonds mid-week raised concerns the debt crisis is spreading to Europe’s core,” said WhatsTrading.com options strategist Frederick Ruffy. Adding to concerns, Standard & Poor’s downgraded Belgium’s credit rating to double-A from double-A-plus, citing concerns about funding and market pressures. The Dow Jones industrial average slipped 25.77 points, or 0.23 percent, to 11,231.78 at the close. The Standard & Poor’s 500 Index declined 3.12 points, or 0.27 percent, to 1,158.67. The Nasdaq Composite Index shed 18.57 points, or 0.75 percent, to 2,441.51. For the week, the S&P 500 fell 4.7 percent, giving back almost two-thirds of its gains in October, the market’s best month in 20 years. The Dow was off 4.8 percent for the week and the Nasdaq fell 5.1 percent. Pressuring the Nasdaq, shares of Netflix fell 6.8 percent to $63.86. Entertainment companies with major consumer product units ranked among the gainers. US-listed shares of Sony Corp. rose 4.2 percent to $16.96. Disney shares rose 0.3 percent to $33.51. Trading volume was thin, as expected, with just 3 billion shares changing hands on the New York Stock Exchange, NYSE Amex and Nasdaq as the stock market closed at 1 p.m. The day after Thanksgiving is typically one of the lightest trading volume days of the year.