Stocks Finish Mixed as U.S. Debt Deadline Nears

Stocks closed mixed Friday after two straight days of losses as traders reacted to a brief reprieve from Europe's debt problems and growing indications that the U.S. may not reach a debt reduction deal on time.

The Dow Jones Industrial Average rose 25 points, or 0.2%, to end at 11,796. The S&P 500 fell 0.5 points, or ended flat, at 1216. The Nasdaq ticked down 15 points, or 0.6%, to 2,573.

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Borrowing costs in Italy and Spain eased after record high levels in recent days pressured the broader market. This came as the European Central Bank bought sovereign bonds for the fifth straight day, according to reports.Yields on the Italian 10-year benchmark had been at 6.68%, while yields on the Spanish 10-year bonds were at 6.76%.The Conference Board's index of leading indicators in the U.S. surprised to the upside Friday. The latest reading rose 0.9% in October, better than the 0.6% rise economists expected, although September's reading was revised to a 0.1% rise from the originally reported 0.2%.Limiting U.S. equities was the deadlock of the U.S. deficit super committee ahead of a Nov. 23 deadline. The 12-member congressional super committee must agree to a plan that would save at least $1.2 trillion over a decade through tax increases and benefit reductions. If the Democrats and Republicans aren't able to negotiate a deal on time, the spending cuts would kick in automatically, split evenly between domestic spending and defense. Investors were watching whether the S&P index, which fell through the key 1225 technical level in the prior session, would be able to hold above 1200, its 50-day moving average. "If 1225 is not reclaimed, one can imagine bearish sentiment only increasing," noted Dan Greenhaus, strategist with BTIG. However, Greenhaus added that "while investors were not necessarily participating on the way up, neither are they participating on the way down.""Psychology and emotion are what's important from a trading perspective," added James "Rev Shark" DePorre, founder and CEO of Shark Asset Management.Earlier Friday, European Central Bank chief Mario Draghi criticized eurozone leaders for failing to follow through with commitments on their so-called comprehensive plans to resolve the debt crisis. "Where is the implementation of these long-standing decisions?" he said in a speech in Frankfurt. "We should not be waiting any longer.The potential spread of Europe's debt crisis to the region's core economies has put pressure on officials to expand the bailout fund as they had planned in a deal last month. However, Germany and France disagree on the role that the central bank should play. German Chancellor Angela Merkel has reiterated that the ECB cannot act as a lender of last resort.London's FTSE lost 1.1%, and Germany's DAX fell 0.9%. Overnight, Asian stocks closed down for the third week. Japan's Nikkei Average was down 1.2% and Hong Kong's Hang Seng was down 1.7%.Salesforce.com(CRM) lost 10% after the software maker swung to a loss in the third quarter and said fourth-quarter earnings could come in below analysts' estimates. The software maker lost $3.8 million, down from profit a year earlier of $21.1 million. Adjusted profit in the quarter was 34 cents a share, compared to the forecasted 31 cents a share.Boeing(BA) shares gained 2.1% after the aerospace giant won a $21.7 billion commercial-jet order from Indonesia's Lion Air -- its biggest-ever commercial-jet order. Shares of Hewlett-Packard(HPQ) added 2.6% after the computer maker appointed activist shareholder Ralph Whitworth, co-founder of the Relational Investors fund, to its board after he acquired an almost 1% stake in the company. Gap's(GPS) third-quarter profit fell 36% as revenue fell 1.8% to $3.58 billion. Gap earned $193 million, or 38 cents a share, down from $303 million, or 48 cents, a year earlier. Analysts were expecting earnings of 36 cents a share on revenue of $3.59 billion. Shares lost 2.6%.Eastman Kodak(EK) may sell Kodak Gallery, its online photo-sharing business, in a continued effort to avert a cash shortfall and potential bankruptcy. The Wall Street Journal reported that private-equity firms and retailers are looking to buy the Kodak business in a sale could net hundreds of millions of dollars. Shares rose 1.7%.Swiss bank UBS(UBS) said it will downsize several businesses, slash up to 2,000 jobs and focus on wealth management as part of an overhaul of its investment banking strategy. The company said Thursday it will try to become more focused, less complex and less capital-intensive. Shares added 2.6%.The January crude oil contract fell $1.26 to settle at $97.67 a barrel, after oil prices topped $100 a barrel earlier in the week for the first time since early June. Gold for December delivery rose $4.90 to end at $1,725.10.The euro gained against the dollar, which was slipped 0.3% compared with a basket of currencies. In the bond market, 10-year Treasuries lost 14/32 with the yield at over 2%..

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