Dow Jones: 12,512 (- 93.28) S&P 500: 1,333 (- 10.33) Nasdaq: 2,803 (- 19.99):US STOCKS fell yesterday on euro zone debt worries that could spill over into next week's trading with a bearish note, while retailers lost ground after a weak profit outlook from Gap.

The S&P 500 remains hemmed in between technical support at 1,330 and resistance at 1,340, suggesting a lack of direction and keeping the market vulnerable to events such as the uncertain outcome of the euro zone's debt problems. Shares of large multinationals, which tend to rely heavily on overseas sales, fell in sync with the euro's slide against the dollar.

The euro lost nearly 1 per cent over disagreements on how to handle debt problems in Greece and ahead of a Spanish regional election.

Gap Inc fell 17.5 per cent to $19.22 after slashing its full-year profit outlook late on Thursday, saying higher price tags would not be enough to offset rising cotton costs. The S&P Retail index fell 1.4 per cent.

In the options market, the predominant activity favoured more bearish bets than have been seen over the past month.

The Dow Jones industrial average was down 93.28 points, or 0.74 per cent, to end at 12,512.04. The Standard & Poor's 500 Index was down 10.33 points, or 0.77 per cent, at 1,333.27. The Nasdaq Composite Index was down 19.99 points, or 0.71 percent, to close at 2,803.32. For the week, the Dow was down 0.7 per cent, the S&P 500 was down 0.3 per cent and the Nasdaq was down 0.9 per cent.

Ahead of May options expiration at yesterday's close, traders had exchanged about 669,000 contracts on the S&P 500 Index as puts outpaced calls by a factor of 2.10:1, according to options analytics firm Trade Alert. The ratio's 22-day moving average is 1.67, Trade Alert data shows.

Oil prices jumped but the S&P energy sector index still fell 0.3 per cent for the day. Exxon Mobil Corp declined 0.9 per cent to $81.57 and Chevron Corp lost 1.3 per cent to $102.57, both dragging on the Dow.

In the industrial sector, Caterpillar Inc shed 0.9 per cent to $104.33, while the S&P Cap Goods sector index lost 1.1 per cent.

On the upside, Barnes & Noble Inc shares jumped 29.9 per cent to $18.33 after John Malone's Liberty Media Corp proposed buying the company for $1.02 billion. - (Reuters)