* Dow's 10-day winning streak may come to a halt
* Dollar index retreats from seven-month high
* Reduced risk appetite boosts bond, gold prices
* Improving view on U.S. lifts Brent oil above $110/bbl
By Richard Leong
NEW YORK, March 15 Wall Street stocks fell on
Friday from near record levels as a 10-day rally paused, while
the dollar fell on views the Federal Reserve will pursue its
aggressive monetary campaign despite signs the U.S. economy is
With the pullback in U.S. stock prices, the Dow Jones
industrial average was in danger of ending its recent winning
streak, while European shares retreated from 4-1/2-year highs.
Investors shifted some money into safe-haven gold and U.S.
and German government debt.
Evidence of an improving U.S. economy, together with supply
concerns from the Middle East, boosted oil prices in London back
above $110 a barrel.
As the U.S. jobs picture brightens despite tax increases and
government spending cuts, some analysts remain upbeat about the
longer-term prospects for stocks.
"If we do get a little bit of a retracement it's just a dip
and all these dips are being met by investors looking to buy any
kind of reversal they can get near," said Gordon Charlop,
managing director at Rosenblatt Securities in New York.
In addition to signs of the labor market picking up steam,
data on Friday showed continued growth in U.S. manufacturing,
although optimism was muted by news of a stronger-than-expected
0.7 percent rise in consumer inflation in February and a
surprise deterioration in consumer confidence.
The Dow Jones industrial average was down 40.67
points, or 0.28 percent, at 14,498.47. The Standard & Poor's 500
Index was down 3.37 points, or 0.22 percent, at 1,559.86.
The Nasdaq Composite Index was down 10.39 points, or
0.32 percent, at 3,248.54.
The S&P 500 was within a few points of its record high on
Europe's broad FTSEurofirst 300 index fell 0.5
percent to 1,201.81 but was still on course for its fifth weekly
rise and hovering near its best levels since mid-2008.
Earlier, Tokyo's Nikkei index ended up 1.45 percent.
MSCI's all-world index, which tracks 9,000
stocks in 45 countries, slipped 0.08 percent to 362.19. It was
set to rise for a second straight week.
Weaker stock prices increased the appeal of bonds and gold.
Benchmark 10-year U.S. Treasury notes were up 12/32
in price to yield 1.9947 percent, while German Bund futures
were 0.19 percent higher at 143.42.
Gold inched up 0.34 percent to $1,594.69 an ounce, on
its way to a weekly gain of 1.1 percent.
The dollar took a breather from its recent sprint higher as
well, slipping 0.55 percent against a basket of major currencies
and moving away from the seven-month high touched on
The euro rose 0.61 percent to $1.3082, recovering
from Thursday's three-month low of $1.2911, and was on course
for a second consecutive weekly gain against the dollar.
Perceptions that U.S. inflation remains mild despite a spike
in gasoline prices earlier this year have eased fears the
Federal Reserve would need to consider an early exit from its
aggressive quantitative easing policy that has helped support
asset prices around the world.
In the oil market, crude prices drew strength from the
better U.S. economic outlook and concerns over supply from the
U.S. crude oil gained 31 cents to $93.34 a barrel
while Brent rose $1.17 a barrel to $110.13.
Supply worries resurfaced when President Barack Obama, ahead
of a visit to Israel next week, said military force remained an
option if sanctions and diplomacy failed to thwart Iran's