Stocks up for week, ending slide

NEW YORK – U.S. stocks fell Friday but still managed a first positive week in four as investors fretted over troubles in Spain, where banks are under severe financial strain and government bond yields shot higher.

“European leaders need to address the situation quickly. The nature of contagion is it feeds on itself,” said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

“Traders by and large tend to square their positions before a big holiday weekend where there’s potential for news flow, especially from Europe,” Skrainka added.

The Dow Jones industrial average lost 74.92 points, or 0.6 percent, to 12,454.83, with the blue-chip index up 0.7 percent for the week.

Posting a 1.7 percent rise from the week-ago close, the S&P 500 index retreated 2.86 points, or 0.2 percent, to 1,317.82. The Nasdaq composite fell 1.85 points to 2,837.53, leaving it 2.1 percent higher from last Friday’s close.

The European-related uncertainty had investors once again flocking to the perceived safe havens of U.S. Treasury notes, the U.S. dollar and gold.

Yields on the benchmark 10-year note fell to 1.74 percent, while the dollar gained against currency rivals, including the euro. Gold futures for June delivery climbed $11.40, or 0.7 percent, to end at $1,568.90 an ounce.

Oil prices advanced, with the July contract rising 20 cents, or 0.2 percent, to $90.86 a barrel.

Consumer confidence climbed in May to its loftiest level since October 2007 as prices at the gasoline pumps took less of a toll on American wallets. The Thomson Reuters/University of Michigan index of consumer sentiment rose to 79.3 from 76.4 in April.

“The improvement in confidence is good to see as a part of sentiment is also related to the labor market. But this number is only a coincident one and thus tells us nothing about how consumers will behave looking forward,” said Peter Boockvar, equity strategist at Miller Tabak.