Dow Gives Up 10,000, but Stocks Higher for the Week

(Updated with stock prices.)

NEW YORK (TheStreet) -- The Dow closed the week just under the phsychologically important 10,000 level Friday, as the major averages slumped after a reading on consumer sentiment and underwhelming quarterly reports from three Dow components.

"I do think there's probably a bit too much hope in that initial batch of earnings, and that's causing some things to pull back," says Charles Rotblut, senior market analyst at Zacks. "But we haven't had strong volume either way, so there's not a lot of conviction."

For the week, the Dow Jones Industrial Average added 1.3%, the S&P 500 gained 1.5%, and the Nasdaq tacked on 0.8%.

But GE and Bank of America traded down 4.2% and 4.6%, respectively, on Friday, and IBM(IBM Quote) lost 5% a day after its better-than-expected report, pulling the Dow lower by 67.03 points, or 0.7%, to 9,995.91.

The S&P 500 declined 8.88 points, or 0.8%, to 1087.68, and the Nasdaq gave up 16.49 points, or 0.8%, to 2156.8 for the session.

General Electric reported a third-quarter profit that topped analysts' estimates. But the bottom line was aided mainly by cost cutting and tax credits, while revenue, which fell 20%, undercut expectations.

GE's finance arm in particular, which saw earnings fall 90%, had investors wincing. CEO Jeff Immelt said the declines were due in part to a faster-than-planned downsizing of the unit.

"GE is a hybrid, and one of those businesses is improving and one is not," says Lawrence Creatura, equity market strategist and portfolio manager from Federated Clover Capital Advisors. "On the industrial side, it looks as if the sun might be rising again, on the financial side, perhaps not yet."