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10A – Daily News – Wednesday, November 24, 2010 Business NEW YORK (AP) — Stocks fell Tuesday as a flare-up of tensions between North and South Korea combined with downbeat news on the economy gave investors Korean conflict, European worries weigh on stocks Wall Street plenty of reasons to sell ahead of the Thanksgiving holiday. The dollar and gold rose as investors sought safe places to park money. North Korea and South Korea exchanged artillery fire, killing at least two South Korean marines. That came as investors were already concerned that a bailout of Ireland may not be enough to con- tain Europe’s debt crisis. Borrowing costs for Portu- gal and Spain rose, leading Spain to trim the size of a debt sale. In the U.S., sales of pre- viously-owned houses dipped 2.2 percent in Octo- ber. Also, Federal Reserve officials became more pes- simistic and lowered their outlook for economic growth for the next year. The Dow Jones industri- al average fell 142.21, or 1.3 percent, to 11,036.37. The Standard & Poor’s 500 lost 17.11, or 1.4 per- cent, to 1,180.73. The Nas- daq composite index fell 37.07, or 1.5 percent, to 2,494.95 The clash between North and South Korea was one of the most dramatic between the two rivals since the end of the Korean war. Fifteen South Korean soldiers and three civilians were injured in the artillery exchanges. The escalating tensions came shortly after the reclu- sive North Korean regime claimed to have a new ura- nium enrichment facility and six weeks after the country’s leader Kim Jong Il anointed his youngest son as his heir apparent. The showdown between the two countries raises ten- sions in Asia, but was seen as less of an immediate danger in the U.S. Traders said the showdown was seen by many as an excuse to pare back exposure to risk ahead of the Thanks- giving holiday Thursday. Trading is expected to be light Wednesday as people leave early. Markets will be open for an abbreviated ses- sion on Friday. ‘‘Investors don’t want to go into the holiday with any lingering doubts,’’ said John Derrick, director of research for U.S. Global Investors. ‘‘The tensions in Korea just gave them another excuse to sell.’’ Hewlett-Packard Co. was the only one among the 30 stocks that make up the Dow Jones industrial aver- age to rise. Shares gained 2.2 percent after the tech- nology company beat Wall Street’s expectations for revenue and income thanks to strong corporate spend- ing. Energy shares led the decline as the price of crude oil fell. Chevron Corp. fell 2 percent, while ExxonMo- bil Corp. lost 1.7 percent. A widening probe into insider trading was still weighing on financial shares Tuesday, a day after FBI agents raided the offices of three hedge funds. JPMorgan Chase & Co. was the worst-perform- ing major bank with a 2.3 percent decline, followed closely by Goldman Sachs Group Inc. with a 2 percent fall. SHOP SMALL JOIN THE MOVEMENT AT: FACEBOOK.COM/SMALLBUSINESSSATURDAY ©2010 AmericanExpress Bank,FSB.All rights reserved. NOVEMBER 27 HELP YOUR FAVORITE LOCAL BUSINESSES START BOOMING On November 27th, support the small business owners who are getting our economy going again. Shop your favorite local stores on the first-ever Small Business Saturday. SM In other gloomy news on the economy, the Federal Reserve lowered its fore- cast for growth through next year. In a report releas- ing minutes from its last meeting Nov. 3, the Fed predicted that the economy will grow only 2.4 percent to 2.5 percent this year. That’s down sharply from a previous projection of 3 percent to 3.5 percent. Next year, the economy will expand by 3 percent to 3.6 percent, the Fed said, also much lower than its June forecast. The darker view helps explain why the Fed decid- ed at its meeting earlier this month to launch another round of stimulus. The cen- tral bank plans to buy $600 billion in Treasury bonds over the next eight months in an effort to lower interest rates and spur more spend- ing. Treasury prices rose, sending their yields lower. The yield on the 10-year Treasury slipped to 2.78 percent, down from 2.80 percent late Monday. That rate is a widely used bench- mark for business and con- sumer loans including mortgages. The dollar rose 1.3 per- cent against an index of six other currencies and the euro fell 1.8 percent against the dollar. Gold rose 1.5 percent to $1,377.60 an ounce.