Stocks fell only slightly on Friday, despite a steadily deteriorating sovereign-debt crisis that sent European bond yields higher, claimed Belgium's credit rating and threatened to move into Japan.
The Dow Jones industrial average closed at 11,231.78, down 25.77 points, or 0.2 per cent. The broader S&P 500 closed at 1,158.67, down 3.12 points, or 0.3 per cent. U.S. markets closed early on Friday, but the retreat added to the worst Thanksgiving week performance for U.S. stocks since the holiday was designated in 1942. In Canada, the S&P/TSX composite index closed at 11,462.06, down 23.26 points, or 0.2 per cent.
The backdrop was worrisome. The International Monetary Fund warned Japan that its government bond yields were at risk of rising sharply, given the country's huge debt levels. Standard & Poor's cut its credit rating for Belgium by one notch, providing yet more evidence that Europe's debt crisis is claiming far more stable economies than the likes of Greece and Italy.
And speaking of Italy, its bond yields moved higher, with the yield on the five-year bond rising to 7.8 per cent and the yield on the 10-year bond rising to 7.3 per cent – borrowing rates that are considered unsustainable.
For the most part, though, North American stocks shrugged off the worst fears about the crisis. Bank of America Corp. rose 0.6 per cent, Alcoa Inc. rose 0.8 per cent and Boeing Co. rose 0.7 per cent.
Netflix Inc. continued to slide, falling 6.8 per cent and hitting a new 52-week low of $63.86 (U.S.). As recently as July, the shares trading for more than $300.
AT&T Inc. fell 0.5 per cent, in the first day of trading since its deal to buy T-Mobil appeared to be falling apart.
Among Canadian stocks, energy producers were mixed, with Suncor Energy Inc. down 2.1 per cent and Canadian Oil Sands Ltd. up 0.6 per cent. Banks were weak, though: Royal Bank of Canada fell 1.1 per cent and Toronto-Dominion Bank fell 0.8 per cent.
Meanwhile, Research In Motion Ltd. fell 0.1 per cent, to a new multi-year low, even after reports showed strong demand the new BlackBerry Bold – alas, in Indonesia.