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Updated from 4:07 p.m. EDT

Stocks took a hit Friday as higher oil and a soft revenue outlook from


(DELL) - Get Dell Technologies Inc Class C Report

erased almost all of the previous session's rally.


Nasdaq Composite


slid 17.65 points, or 0.81%, to 2156.90. The

Dow Jones Industrial Average


fell 85.58 points, or 0.8%, to 10,600.31, and the

S&P 500


lost 7.42 points, or 0.6%, to 1230.39.

"Today's decline was once again about oil, mixed with the disappointing economic data," said Peter Cardillo, chief market analyst with SW Bach & Co. "With prices near $67 a barrel, inflation is creeping in."

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For the week, the Dow gained 0.4% and the S&P 500 added 0.32%, and the Nasdaq lost 0.96%.

About 1.30 billion shares changed hands on the

New York Stock Exchange

, with decliners beating advancers by a 5-to-3 margin. Trading volume on the Nasdaq was 1.59 billion shares, with decliners outpacing advancers 2 to 1.

It was difficult Friday to identify a sector showing gains. The NYSE Energy Index lost 0.2%, the NYSE Health Care Index finished down 0.6%, the Nasdaq Biotech Index fell 1% and Nasdaq Bank Index was off 0.6%.

"I've been expecting corrective behavior in the market, which we are in today," said Barry Hyman, equity market strategist with Ehrenkrantz King Nussbaum. "With technology off, it'll be interesting to see how strength is rotating in other sectors."

Elsewhere, the 10-year Treasury was up 20/32 in price to yield 4.24%. In the currency markets, the dollar fell against the euro and the yen.

"The economic news wasn't great today," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "With all of this, I'm not surprised to see the market give back yesterday's gains. Once the momentum starts to build downward, people all jump into the boat at the same time. The volatility isn't surprising today."

Crude oil has been on a record run this week, holding sway over stocks for a good part of the time. The September contract finished up another $1.06 to $66.86 a barrel, its fifth straight new record high. Prices briefly topped the $67-a-barrel price level earlier in the session.

Meanwhile, Dell dragged down a slew of technology names. The PC giant reported a mostly in-line second quarter, with earnings rising 28% from a year ago and matching analyst estimates on an adjusted basis. For this quarter, however, Dell sees sales as much as $500 million below estimates. Piper Jaffray lowered its stock price target for Dell to $42 from $48 after the news, but maintained a rating of outperform for the stock.

Dell shares dropped $2.94, or 7.4%, to finish at $36.64. Among its peers and suppliers,


(INTC) - Get Intel Corporation Report

fell 1.9% to $26.31,


(CSCO) - Get Cisco Systems, Inc. Report

fell 1.4% to $17.80,


(MSFT) - Get Microsoft Corporation Report

slipped 0.8% to $27.05, and



lost 1% to $3.81.

On the economic front, the Commerce Department said the trade balance widened in June to $58.8 billion from a revised $55.4 billion in May. Economists expected the deficit to swell to $57.5 billion.

"About half of the $3.4 billion rise in the deficit was due to higher petroleum imports, reflecting higher prices," said Ian Shepherdson, chief economist with High Frequency Economics. "Next month, oil prices will lift the headline deficit again."

The Labor Department released its import price index for July, with import prices rising 1.1% and export prices increasing 0.1%. Economists predicted import prices would rise 0.6% in July after a 1% increase in June.

Also, the University of Michigan's preliminary reading of consumer sentiment for August fell to 92.7. Economists expected a reading of 96.0 in the preliminary reading after the final July print of 96.5.

Graphics-chip maker


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rose 6% as investors shrugged off light revenue in the latest quarter and focused instead on the company's strong profit. Nvidia gained $1.70 to $29.95.

In other earnings news,

Movie Gallery


dropped 5.1% after falling short of analysts' estimates and saying video rentals were weak. Movie Gallery slid $1.09 to close at $20.27.

Late Thursday, retail chain


(KSS) - Get Kohl's Corporation Report

reported a second-quarter profit of $187 million, or 54 cents a share, up from $147 million, or 47 cents a share, a year ago. Revenue rose 16% to $2.89 billion from a year ago. The Thomson First Call consensus was for earnings of 52 cents a share on revenue of $2.89 billion. Kohl's rose $1.25, or 2.3%, to $56.

Taser International


jumped 10.8% after an Arizona Court ordered the dismissal of a wrongful death lawsuit. With the dismissal, the plaintiff won't be able to refile a claim against Taser regarding the death. Shares finished up 91 cents to $9.35.

In ratings moves, Goldman Sachs downgraded

Jones Apparel


to underperform from in-line, citing shrinking margins due to poor performance at department stores. Jones fell 42 cents, or 1.4%, to $28.94.

Bank of America upgraded

United Technologies

(UTX) - Get United Technologies Corporation Report

to buy from hold and also lifted its price target. The firm raised its stock price target to $60 from $55 and 2005 earnings forecast to $3.10 a share from $3.03. The stock rose 15 cents, 0.3%, to $51.78.

Overseas equities were mixed. London's FTSE 100 was down 0.2% at 5346, and Germany's Xetra DAX was off 0.3% at 4937. Japan's Nikkei edged lower to 12,262, and Hong Kong's Hang Seng ticked up to 15,451.

To view Gregg Greenberg's video take on today's market, click here