Stocks end winning streak as retail gets slammed

The market slumped to its second-biggest weekly loss of the year Friday, breaking six consecutive weeks of gains. Fears that the holiday shopping season will be a dud tanked retail stocks. The price of oil continued to fall.

IN THE RED: The Dow Jones industrial average fell 202.83 points, or 1.2 percent, to 17,245.24. The Standard & Poor's 500 index gave up 22.93 points, or 1.1 percent, to 2,023.04. The Nasdaq composite index slipped 77.20 points, or 1.5 percent, to 4,927.88.RETAIL WOES: Department store operator Nordstrom retreated $10.33, or 16.3 percent, to $53.14 after its report Thursday afternoon. J.C. Penney's results were about equal to analyst projections, but its stock lost 98 cents, or 11.1 percent, to $7.81. Earlier this week Macy's also posted disappointing quarterly results.

Other chains like Ross Stores and TJX, the parent of TJ Maxx, also slumped. E-commerce giant Amazon fell $10.13, or 1.5 percent, to $655.47.

HOLIDAY WORRIES: The latest reports were another warning sign about the holiday shopping season, which will soon kick into high gear. Black Friday is in two weeks and Christmas is six weeks away. Video game retailer GameStop sank $6.67, or 15 percent, to $37.86 and watchmaker Fossil Group plunged $16.53, or 32.4 percent, to $34.48. Fossil posted disappointing earnings Thursday afternoon and also said it will buy activity tracker maker Misfit for $260 million.

DON'T CRY IN YOUR EGG NOG: Stifel Nicolaus analyst Richard Jaffe suggested the steep drop in retail stocks was an overreaction. Shoppers will spend plenty of money this holiday season, he said, and while they're spending more money on smartphones and TVs and other big items than they used to, there will still be plenty of socks and sweaters given as gifts.

"Christmas is boxed gifts," he said. "There will be a lot of gift giving, a lot of apparel sales."

WEAK SPENDING: U.S. retail spending edged up just 0.1 percent in October, a bit less than analysts expected. Prices charged by farmers, manufacturers and other producers fell in October. Both measurements show there is little sign of inflation in the U.S. economy. When inflation is higher, consumers have an incentive to spend more money.

THE BIG PICTURE: Stocks rallied in October and had their best month in four years, but they've slipped back in November. The S&P 500 is now negative for 2015. The market is headed for its worst week since mid-August.

EUROZONE SLOWDOWN: Economic growth in the countries that use the euro slowed in the third quarter. The figures were disappointing, but they're likely to encourage the European Central Bank to expand a program to stimulate Europe's economy.

COMMODITIES DROPPING: The price of oil continued to fall. U.S. crude slumped 85 cents, or 2 percent, to $40.90 a barrel in New York. It's dropped about 14 percent this month and is at its lowest price since late August. Brent crude, which is used to price international oils, lost 41 cents, or 0.9 percent, to $44.78 a barrel in London.

Commodities prices are skidding as the Federal Reserve gets ready to raise interest rates just as central banks in Europe and Japan consider new economic stimulus moves. That could make the dollar even stronger, making dollar-denominated commodities costlier to buyers using yen, euro and other currencies.

PERRIGO SAYS NO: Shareholders of Irish drugmaker Perrigo rejected a $26 billion offer from generics maker Mylan of the Netherlands. Perrigo fell $10.58, or 6.8 percent, to $145.97 and Mylan climbed $5.81, or 13.4 percent, to $49.01.

BONDS, CURRENCIES: U.S. government bond prices rose. The yield on the 10-year Treasury note slipped to 2.28 percent from 2.31 percent late Thursday. The euro declined to $1.0715 from $1.0791 and the dollar edged up to $122.98 yen from 122.62 yen.