* Retailers hopeful over holiday shopping season
* Commodity-related shares lead declines, U.S. dollar up
* Lisbon denies report of pressure to seek bailout
* Indexes down: Dow 0.7 pct; S&P 0.5 pct; Nasdaq 0.2 pct
* For up-to-the-minute market news see []
(Updates to midmorning, changes quotes)
By Rodrigo Campos
NEW YORK, Nov 26 (Reuters) - Commodity-related shares led
U.S. stocks lower on Friday in a shortened post-holiday
session, as investors shook off risky assets on worries that
euro zone debt problems may continue to spread.
The U.S. dollar rallied while the euro slid to a new
two-month low after a German newspaper reported that a majority
of euro zone members and the European Central Bank were
pressuring Lisbon to seek a bailout. Portugal and the European
Commission denied the report. For details see []
and []
The S&P materials sector <.GSPM> dropped nearly 1 percent
as key base metals prices fell, pressured by the advancing
greenback and after the Shanghai Futures Exchange raised margin
requirements, prompting liquidation of speculative positions.
[].
Freeport McMoRan Copper & Gold <FCX.N> dropped almost 2
percent to $98.76.
"The debt crisis in Europe is attracting a lot of dollar
buyers, causing risk aversion," said Peter Cardillo, chief
market economist at Avalon Partners in New York.
The Dow Jones industrial average <> fell 72.96 points,
or 0.65 percent, at 11,114.32. The Standard & Poor's 500 <.SPX>
was down 5.80 points, or 0.48 percent, at 1,192.55. The Nasdaq
Composite Index <> lost 5.95 points, or 0.23 percent, at
2,537.17.
More than 80 percent of the S&P 500 components traded
lower.
Investors were further rattled after China warned against
military acts near its coastline ahead of U.S.-South Korean
naval exercises that North Korea said risked pushing the region
towards war. The North shelled a South Korean island earlier
this week. [] and []
Cardillo said the tense Korea situation is "very much
alive" in investors' minds.
Consumer-related stocks were in focus as Black Friday, the
time of year when retailers turn a profit. kicked off what
could be the strongest holiday shopping season in three years.
[]
"From every indication we've gotten so far in consumer
spending, I think the consumer will be out there, and it will
be a good holiday season" for retailers, said Cardillo.
Still, retail shares were sluggish. Discount retailers
Wal-Mart Stores Inc <WMT.N> dipped 0.4 percent at $53.82 and
Target Corp <TGT.N> fell 0.7 percent to $56.86, while Macy's
Inc <M.N>, operator of its namesake retail chain and upscale
Bloomingdale's, edged 0.3 percent lower to $25.95.
Del Monte Foods Co <DLM.N> rose 4.2 percent to $18.75 a day
after the company agreed to a buyout led by Kohlberg Kravis
Roberts & Co <KKR.N>. []
Volume was very light at midmorning, with U.S. stock
markets set to close at 1 p.m. EST (1800 GMT) following the
U.S. Thanksgiving holiday on Thursday.
(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)
