Fitch Downgrades France AAA Rating ..

U.S. stocks finished mixed to lower on Friday after Fitch Ratings said it was sticking with its AAA rating for France but revising its outlook down while warning that downgrades were possible for six other eurozone countries.

The Dow Jones Industrial Average closed down 0.02%, while the S&P 500 index was up 0.32% and the Nasdaq Composite index gained 0.56% on Friday.

In the U.S. on Friday, the government reported that November inflation came in flat from October, off from a forecast for a 0.1% gain.

Neural inflation data coupled with fears the European jitters would subside for now sent stock prices climbing in earlier trading.

Gains continued until Fitch Ratings said it was sticking with its AAA rating for France, but revised the outlook to suggest a downgrade was possible within 18 months.

Fitch also said downgrades were possible for Italy, Spain, Ireland, Belgium, Slovenia and Cyprus.

The move wiped out hopesthat the U.S. was finally decoupling from the European debt crisis.

"I think it is wrong, but there is a false sense of security about the U.S. economy and optimism that the recent spate of reasonably OK economic data will allow us to avoid a recession here," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania, according to Reuters.

Aside from inflation data, initial jobless claims in the U.S. came to 366,000 during the last week, below forecasts for a 390,000 figure, the government reported on Thursday.

Leading losers included IBM, which was down 2.02%, United Technologies, down 1.59% and Bank of America, down 1.33%.

Leading gainers included Home Depot, up 2.59%, Microsoft, up 1.60% and General Electric, up 1.19%.

Hopes for an break in the European debt crisis buoyed stock indices in Europe, although gains were mixed.

France's CAC 40 fell 0.88%, Germany's DAX fell 0.50%, while Britain's FTSE 100 rose 0.06%.
Markets may be quiet ahead of the holiday season although talk of downgrades in Europe will rattle equities markets.

On Sunday, the U.K. will unveil its Rightmove House Price Index, which measures changes in asking prices of homes for sale.