FILE - In this Nov. 15, 2012 file photo, traders work on the floor of the New York Stock Exchange. Uncertainty over whether U.S. leaders can resolve a critical budget deadlock and figures showing the eurozone's unemployment rate at a record high capped any gains to be made in the markets Friday, Nov. 30, 2012. (AP Photo/Seth Wenig, File)
FILE - In this Nov. 15, 2012 file photo, traders work on the floor of the New York Stock Exchange. Uncertainty over whether U.S. leaders can resolve a critical budget deadlock and figures showing the eurozone's unemployment rate at a record high capped any gains to be made in the markets Friday, Nov. 30, 2012. (AP Photo/Seth Wenig, File)
NEW YORK (AP) ? Stocks were inching lower on Wall Street Friday as lawmakers worked to thrash out a budget agreement. The government also reported that consumer spending fell in October.
The Dow Jones industrial average was down 12 points to 13,009 as of 1:55 p.m. Eastern. The Dow fluctuated between small gains and losses for much of the morning, then creeped lower in the afternoon.
The Standard and Poor's 500 was down 1 points to 1,415. The Nasdaq composite was down six points to 3,006.
Stocks are also little changed for the week. The Dow is up 0.03 percent, the S&P 500 index is up 0.4 percent. The market has fluctuated between gains and losses in recent days as news and comments filtered out from the budget negotiations in Washington.
Investors have been closely following the talks between the White House and Congress over the "fiscal cliff," a series of sharp government spending cuts and tax increases scheduled to start Jan. 1 unless an agreement is reached to cut the budget deficit. Economists say that those measures, if implemented, could push the U.S. economy back into a recession.
"Right now the market is just going to be held hostage as to what happens in the next five hours, versus what's going to happen in the next five years," said Dan Veru, chief investment officer at Palisade Capital Management, in Fort Lee, New Jersey.
President Barack Obama argued Friday that allowing taxes to rise for the middle class would amount to a "lump of coal" for Christmas, while Republican House Speaker John Boehner declared that negotiations to surmount a looming fiscal cliff are going "almost nowhere."
Speaking at a toy factory, the president said Republicans should extend existing Bush-era tax rates for households earning $250,000 or less, while allowing increases to kick in for the wealthy. On Capitol Hill, Boehner argued that Obama's latest offer ? to raise revenue by $1.6 trillion over the next decade ? would be a "crippling blow" to an economy that is still struggling to find its footing.
"My sense is that investors are going to be busy reading headlines every day for the next three weeks," said Jack Ablin, chief investment officer at BMO Group in Chicago.
Ablin says that he expects policy makers to reach a temporary agreement on the budget before year-end, before coming to a "Grand Bargain" next year. He believes improving consumer confidence and rising house prices will underpin the economy and support demand for stocks.
Stocks are higher for the year. The Dow is up 6.5 percent, the S&P 500 index 12 percent. The indexes are on track to end the month little changed.
Americans cut back on spending last month and saw no growth in their income, reflecting disruption from Superstorm Sandy that could hold back economic growth in the final months of the year.
The Commerce Department reported that consumer spending dropped 0.2 percent in October. That's down from an increase of 0.8 percent in September and the weakest showing since May.
The yield on the 10-year Treasury note was little changed at 1.62 percent.
Among stocks making big moves:
?Yum Brands, which owns KFC, Pizza Hut and Taco Bell, fell $7.16 to $67.30. The fast-food operator reported disappointing sales and earnings forecasts. An analyst recommended that investors sell the stock.
?Zynga, the maker of computer games including "Farmville" and "Cityville," fell 18 cents to $2.44 after the company said late Thursday that it was loosening its relationship with Facebook. While the deal frees Zynga from having to use Facebook as the exclusive social site for its games, the company relies on Facebook for most of the revenue it generates even as it works to establish its independence.
?VeriSign plunged $5.33 to $34.02 after the company announced the terms of its new contract to run the key directories that keep track of ".com" domain names. The company won't be allowed to raise prices on the registration of such names without government approval.
?Duke Energy rose $1.07 to $63.46 after the company said its CEO will step down as part of a settlement with the North Carolina utilities regulator that ends an investigation into the company's takeover of in-state rival Progress Energy.
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