Mixed Finish for Wall Street

Breadth was positive heading into the weekend. On the New York Stock Exchange, 4.29 billion shares changed hands, as decliners topped advancers by a 2-to-1 margin. Volume on the Nasdaq reached 2.46 billion shares, with losers beating winners nearly 8 to 7.

Stocks initially rallied after a Thursday evening speech from Fed Chairman Ben Bernanke in Charlotte, N.C. In his remarks, Bernanke suggested that the U.S. housing slump and recent turmoil in the markets may be hitting the economy.

"The combination of higher gas prices, the weak housing market, tighter credit conditions and declines in stock prices seem likely to create some headwinds for the consumer in the months ahead," Bernanke said.

Most took Bernanke's remarks as a sign that the Fed will be inclined to cut rates again when the Federal Open Market Committee convenes next on Dec. 11.

In recent days, traders had celebrated remarks from Fed Vice Chairman Donald Kohn, who also implied that rate cuts are looming. Kohn's speech contributed to the biggest two-day rally on Wall Street in nearly five years earlier this week.

"The strong rally we've had over the past few days is due to a priced-in interest rate cut," said Peter Cardillo, chief market economist with Avalon Partners. "Now we have to see if we can get out of this volatile trading range or if we return to square one. We're going to be very data-dependent heading into next week."

Last time out, stocks endured a seesaw session before ultimately notching gains. The Dow tacked on 22.28 points to 13,311.73. The S&P 500 was up 0.70 point to 1469.72. The Nasdaq also bounced around the flatline before finishing ahead by 5.22 points to 2668.13.

The Nasdaq's pressure in the new session came after Dell offered on a weak outlook for consumer sales. The computer maker did, however, post a 27% rise in third-quarter profit, meeting Wall Street's target. Dell lost $3.60, or 12.8%, to $24.54.

Investors also digested data on one of the Fed's key inflationary figures. The Commerce Department said personal income rose 0.2% in October and spending advanced 0.2%, both slightly below expectations.

The core personal consumption expenditure index -- a Fed favorite -- rose 0.3% as expected, but is now up 2.9% from a year ago.

Also on the economic front, the Chicago Purchasing Managers said its manufacturing index rose to a reading of 52.9 in November from 49.7 last month. Additionally, the Census Bureau said construction spending fell 0.8% in October, worse than expected.

Elsewhere, a report in The Wall Street Journal said that the U.S. government and lenders were working on an agreement that would temporarily freeze rates on subprime mortgage loans.

Following that news, Freddie Mac (FRE Quote) added 18.8%, Fannie Mae (FNM Quote) was up 18.6%, Countrywide (CFC Quote) gained 16.3%, and Citigroup (C Quote) rose 3.1%.

The report also lifted homebuilder stocks. D.R. Horton(DHI Quote) climbed 14.3%, while Lennar(LEN Quote) and KB Home(KBH Quote) added 7.2% and 8%, respectively.

Motorola (MOT Quote) rose 2% after word that CEO Ed Zander will step down by the end of the year. Zander will still remain chairman, while Greg Brown will take over the reins.

The earnings calendar was light, with Tiffany(TIF Quote) one of the few names reporting. The jeweler posted a third-quarter profit more than tripled and lifted its guidance for the year. Still, the stock ended down $2.32, or 4.8%, to $46.43.

Oil prices fell $2.30 to end the week at $88.71 a barrel. Gold and silver futures also fell hard for the week.

U.S. Treasurys were declining in price, pushing yields upward. The 10-year note was down 10/32 to yield 3.97%. The 30-year bond was off 29/32 in price, yielding 4.40%.

Overseas markets were mostly higher. In Asia, Hong Kong's Hang Seng rose 0.6% overnight, and Japan's Nikkei 225 added 1.1%. Among European bourses, London's FTSE 100 tacked on 1.3% and Germany's Xetra Dax was up 1.4%.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting