Stocks end down, spooked by global economic issues

Investors spooked by Europe's spreading debt woes, American bank stress tests and slower manufacturing in China pushed stocks sharply lower Wednesday for the sixth day of losses. The American markets ended the day down more than 2 percent.

Relatively few shares were traded as many U.S. market participants got an early start on the Thanksgiving holiday. U.S. markets are closed today and will have shortened hours on Friday.

The Dow fell 236.17 points, or 2.05 percent, to 11,257.55. The Dow has now given back more than half of its big October rally. It jumped 9.5 percent last month, the biggest gain since 2002.

The Standard & Poor's 500 index fell 26.25 points, or 2.21 percent, to close at 1,161.79. All 10 industry groups fell sharply, led by energy companies, materials makers and banks. The index is headed for its sixth straight decline, the longest losing streak since August.

The Nasdaq composite index lost 61.2, or 2.43 percent, to close at 2,460.08.

Traders worldwide reacted with caution to the poor results at an auction of German debt, which drew too few bids to sell all of the 10-year notes being offered. Germany has Europe's strongest economy, and traders have bought its debt as a safe place to store value during turbulent times.

The weak buying suggests that Europe's crisis might be infecting strong nations that are crucial to keeping the euro currency afloat. Germany bears much of the burden of bailing out weaker neighbors such as Greece and Portugal.

Borrowing costs for Italy and Spain rose from levels that already were considered dangerously high. Europe lacks the resources to bail out those countries, which have its third- and fourth-biggest economies.

The dollar rose sharply against the euro as investors moved money into assets considered to be relatively safe. The euro fell below $1.34, from $1.35 late Tuesday. -- AP