* Moody's warns on Spain's rating, sending dollar higher
* Industrial production rises in November
* Year-end profit taking a factor for traders: analysts
* Dow off 0.3 pct, S&P off 0.6 pct, Nasdaq off 0.5 pct
* For up-to-the-minute market news see []
(Updates to afternoon trading, changes byline)
By Ryan Vlastelica
NEW YORK, Dec 15 (Reuters) - U.S. stocks fell on Wednesday
as the dollar rallied after Moody's warned Spain its debt
rating could be downgraded, bringing concerns about the
euro-zone debt crisis back to the forefront.
The S&P 500 and the Nasdaq traded near session lows as
Moody's comments lifted the dollar, which has tended to have a
strong inverse relationship with equities of late. For
details, see []
However, positive U.S. data helped offset those concerns
as industrial production rose in November at its fastest pace
in four months, implying that self-sustaining recovery is now
entrenched. An index of manufacturing activity in New York
rebounded strongly, adding to the brighter picture.
[]
"We had a lot of very positive data today, but we still
have persistent euro-zone concerns, which is creating this
tussle in the market," said Judy Moses, a San Francisco-based
portfolio manager at Evercore Wealth Management, which has
about $2.3 billion in assets under management.
Moses added that seasonal issues related to the end of the
year could be affecting traders.
"Managers don't want to show high cash balances after such
a strong year, but at this point, they also want to lock in
gains."
The Dow Jones industrial average <> slipped 29.06
points, or 0.25 percent, to 11,447.03. The Standard & Poor's
500 Index <.SPX> declined 7.42 points, or 0.60 percent, to
1,234.17. The Nasdaq Composite Index <> fell 12.55
points, or 0.48 percent, to 2,615.17.
Since 1990, stocks in the S&P 500 have averaged a gain of
1.9 percent over the last 10 trading days of the year,
according to Bespoke Investment Group, which also found the
winners for the year outperform in the final two weeks while
the losers continue to lag.
Regional banks benefited as investors looking to boost
returns scooped up stocks that have performed well this year.
The S&P 500 is up almost 11 percent so far this year. Regions
Financial Corp <RF.N> rose 1.8 percent to $6.31.
[]
"We're going into the end of the year and just hit a
two-year high, so even though macro data has been better,
things haven't perked up so much to lift us farther from
here," said Adrian Cronje, chief investment officer at the
Atlanta-based Balentine, which has about $800 million in
assets under management.
Other stocks that have recently scored sharp gains
retreated as investors opted to lock in profits. Netflix Inc
<NFLX.O> slipped 0.6 percent to $177.32, but the stock has
surged some 225 percent this year.
Honeywell International Inc <HON.N> fell 1.7 percent to
$51.67 after it gave a 2011 profit growth outlook that
analysts described as conservative. []
Caterpillar Inc <CAT.N> rose 1.1 percent to $93.08 after
RBC raised its price target to $108 from $98.
A deal that President Barack Obama struck with Republicans
to extend the Bush-era tax rates sailed through the U.S.
Senate on Wednesday and will soon head to the House of
Representatives, where it could face steeper opposition,
though it is still expected to pass. []
(Reporting by Ryan Vlastelica; Editing by Jan Paschal)
