Stocks Gain Friday on a Grim Week

U.S. stocks closed modestly higher in a choppy session Friday, but ended sharply lower for the week amid ongoing worries over a global slowdown. The Dow average ended up 37.65 points, or 0.35%, at 10,771.48. For the week, the blue-chip index lost 6.4%. The S&P 500 rose 6.87 points, or 0.61%, to 1,136.43 points Friday, but lost 6.5% for the week. The Nasdaq Composite gained 27.56 points, or 1.12%, to 2,483.23. It lost 5.3% for week.

The world’s major economic powers are pledging to launch a bold effort to deal with a chronic slowdown in growth and a European debt crisis threatening to push the global economy into another recession. But so far, markets are not buying the new commitments.

The Democratic-led Senate blocked a House bill Friday that would provide disaster aid and keep government agencies open, escalating the parties’ latest showdown over spending and highlighting the raw partisan rift that has festered all year.

Oil fell for a third straight day on Friday on worries that the global economy is headed for recession and could cut demand for crude. Benchmark U.S. oil fell 66 cents to finish at $79.85 per barrel.

The Blockbuster video store chain and new owner Dish Network are ganging up on Netflix with a less expensive way to watch Internet video and rent DVDs through the mail.