Stocks End Rocky Week Mixed

Updated from 4:19 p.m. EST

Wall Street closed mixed Friday as traders waded through the latest data on the economy, another string of corporate earnings and word that a blockbuster merger could be in the works in the financial sector.

The Dow Jones Industrial Average rebounded from its session lows and finished down 15.54 points, or 0.12%, at 12,487.02. Earlier, the Dow fell by as many as 70 points. The S&P 500 was off 1.72 points, or 0.12%, at 1422.18.

The Dow faced pressure from losses of 1% or more in Wal-Mart (WMT Quote), AT&T (T Quote), Disney (DIS Quote) and JPMorgan Chase (JPM Quote).

On the plus side, the tech-heavy Nasdaq Composite overcame early weakness and added 1.25 points, or 0.05%, to 2435.49, benefiting from a 3.9% rise in KLA-Tencor (KLAC Quote).

All told, the Dow was lower for the week by 78 points. The Nasdaq lost 16 points, and the S&P 500 was off by 8 points. In percentage terms, all three dropped about 0.6%.

Roughly 2.72 billion shares changed hands on the New York Stock Exchange, and volume on the Nasdaq reached nearly 2.06 billion shares. Winners outpaced losers 3 to 2.

After struggling for much of the day because of concerns about the Federal Reserve's stance on rates, stocks were energized late by speculation that Bank of America (BAC Quote) and Countrywide Financial (CFC Quote) are talking about joining forces.

The Financial Times reported that the discussions were at an early point but could ultimately lead to BofA taking over Countrywide. Shares of Countrywide rose 4.2% to close at $42. BofA was off 0.7% at $52.04.