US STOCKS-Materials shrs lead Wall St down on euro debt woes

* 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 [STXNEWS/US]
(Updates to midmorning, changes quotes)

By Rodrigo Campos

NEW YORK, Nov 26 (BestGrowthStock) – Commodity-related shares led
U.S. stocks (Read more about the stock market today. ) 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 [ID:nLDE6AP0F4]
and [ID:nTOPNOW6]

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.
[ID:nL3E6MQ0FH].

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 (.DJI: ) 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 (.IXIC: ) 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. [ID:nL3E6MQ058] and [ID:nKOREA]

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.
[ID:nNN2529414]

“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: ). [ID:nN25103057]

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)

US STOCKS-Materials shrs lead Wall St down on euro debt woes