Stocks Log First Weekly Loss Since Early May

Investors have been keeping a close eye on the bonds market recently, concerned that a run-up in Treasury yields will lead to higher borrowing costs and potentially erode some of the economy's progress. Long-term Treasury yields are closely linked to interest rates on mortgages, which have been rising in recent weeks.

Tech stocks moved higher as Apple Inc.'s latest version of its popular iPhone hit store shelves. Apple shares added $3.60, or 2.7 percent, to $139.48, while rival smart phone maker Palm Inc. jumped more than 6 percent, rising 87 cents to $13.93.

Oil prices reversed early gains and fell $1.82 to settle at $69.55 a barrel in light trading as the contract was set to close Monday.

The dollar fell against the euro and the British pound. Gold prices rose.

Overseas, Japan's Nikkei stock average rose 0.9 percent. Britain's FTSE 100 rose 1.5 percent, Germany's DAX index rose 0.04 percent, and France's CAC-40 rose 0.9 percent.

BlackBerry maker Research in Motion Ltd. reported a better-than-expected 33 percent increase in first-quarter earnings, but shipments were below expectations. The stock dropped $3.77, or 4.9 percent, to $72.78.