Mixed End on Wall Street

The Dow finishes slightly higher, but the Nasdaq loses ground.
Publish date:

Updated from 4:19 p.m. EDT

A rally in the last hour of trading Friday allowed tech stocks to pare their losses, and the

Dow Jones Industrial Average

managed to post a small gain thanks to a jump in

General Motors

(GM) - Get Report


The Dow ended up 9.61 points, or 0.09%, to 10,512.63, and the

S&P 500

was lower by 2.82 points, or 0.23%, at 1198.11. The

Nasdaq Composite

was down 13.91 points, or 0.67%, to 2063.00, as


(INTC) - Get Report

midquarter update didn't inspire buyers. The 10-year Treasury note was off 25/32 to yield 4.04%, while the dollar rose against the yen and euro.

"Investors got a chance to take some money off the table, being a Friday," said Peter Cardillo, chief market analyst with S.W. Bach & Co. "All in all, the market closed with a decent week, holding most of their small gains. It was a typical summer-Friday-action day. Although it was a trading range week, next week will see the market pick up with more concentration on economic data."

For the week, the Dow was higher by 0.49% and the S&P 500 added 0.17%, while the Nasdaq fell 0.41%.

"We're seeing a bit of a correction after a real good run on technology over the last couple weeks," says Paul Nolte, director of investments with Hinsdale Associates. "The market has a collective yawn after the trade budget number, too. There's really nothing to move the market out of its range so far. There's a little rotation, but nothing to get excited about."

Trading volume on the

New York Stock Exchange

was 1.64 billion shares, with decliners even with advancers. Volume on the Nasdaq was 1.43 billion shares, with losers beating winners 8 to 7.

Oil futures, which added $1.74 a barrel Thursday on concerns about a tropical storm in the Gulf of Mexico, were lower in choppy trading. The July crude contract closed down 74 cents to $53.54 a barrel, even as major oil companies reported no production curtailments through Friday morning.

Oil stocks including

Exxon Mobil

(XOM) - Get Report



(BP) - Get Report


Royal Dutch


finished lower.

On the economic front, the Commerce Department said that the April U.S. trade deficit swelled to $57 billion. Economists expected the deficit to widen to $58 billion from a revised $53.6 billion in March. Exports rose 3% to a record $106.4 billion in April, while imports rose 4.1% to a record $163.4 billion, due to crude oil prices.

"The surprise here is exports, up a hefty 3%, the best month since December," says Ian Shepherdson, chief economist with High Frequency Economics. "The core number was even better, up 3.9%, with strength in most sectors except consumer goods. Such a big leap is not sustainable, though exports can continue to trend higher at a more moderate pace of about 1% per month. Still, the data suggest trade could be a small positive for second-quarter growth."

Also, the Labor Department reported that the import price index for May fell 1.3%. Economists forecast a 0.4% decrease in prices for imported goods after a revised 1.2% increase in April. Export prices in the month fell 0.1%.

Stronger sectors Friday included materials, utilities and autos. Weaker areas included technology, semiconductors and biotech.

Intel closed down 2.6% despite raising June quarter revenue guidance to a range of $9.1 billion to $9.3 billion and its gross margin estimate to 57% from 56%. The old range was $8.6 billion to $9.2 billion with margin guidance of 56%. The stock, which rallied more than 20% over the last month, lost 72 cents to $26.98.

Intel's decline helped send the Philadelphia semiconductor sector index down 1.8%, which had 18 out of its 19 components in the red. Other decliners include

Advanced Micro Devices

(AMD) - Get Report


National Semiconductor



Texas Instruments

(TXN) - Get Report



(XLNX) - Get Report


GM kept the Dow near the flat line after reports that United Auto Workers representatives gave the green light to discuss with the company ways to cut health care costs. GM has repeatedly said that the costs of health care for employees have been a key factor in the company's recent losses. Shares of GM added $2.70, or 8.5%, to $34.51.

President and Chief Operating Officer Gary Daichendt has left

Nortel Networks


after three months, resigning over style differences with CEO Bill Owens. Daichendt will be succeeded by Owens, who is also the company's vice chairman. Shares of Nortel lost 23 cents, or 8.2%, to $2.58.


(AAPL) - Get Report

eased on a


story saying


(MSFT) - Get Report

plans to open a subscription music service that competes with iTunes later this year. Apple was down $1.84, or 4.9%, to close at $35.81, while Microsoft was off 8 cents, or 0.3%, to $25.43.


(C) - Get Report

outlined an agreement Friday in which it will pay former Enron investors $2 billion to cover a class-action lawsuit relating to the energy company's bankruptcy. Citi said the payout is covered by existing reserves. Citigroup closed 4 cents, or 0.1%, lower at $47.64.


Linens N Things

(LIN) - Get Report

is now projecting a second-quarter loss of 11 cents to 15 cents a share, down from its earlier target of a profit in a range of 3 cents to 9 cents a share. The Thomson First Call average consensus is for a profit in the quarter of 5 cents a share. The stock, which was lower for most of the session, reversed and finished up 9 cents, or 0.4%, to $23.64.

Late Thursday,


(CAE) - Get Report

posted fiscal first-quarter earnings that beat Wall Street expectations, with net income that reached $12.2 million, or 95 cents a share. Revenue rose to $114.5 million from $93.5 million. Analysts expected first-quarter earnings of 58 cents a share, according to Thomson First Call. Cascade surged $7.79, or 23.2%, to $41.41.

Also in earnings news,

Toys R Us


said its fiscal first-quarter loss widened to $41 million, or 19 cents a share, compared with a loss of $28 million, or 13 cents a share, last year. Sales rose 3.6% from a year ago to $2.06 billion. Analysts expected a loss of 3 cents a share for the quarter, according to Thomson First Call. The stock rose 5 cents, or 0.2%, to $26.37.

Shares of



added 11.9% Friday after the company raised its fiscal 2006 earnings forecast. Harris raised its profit guidance to between $1.73 and $1.78 a share from its previous forecast of $1.63 to $1.68 a share. The company cited unexpectedly high orders for its tactical radios by the U.S. armed forces. Shares were up $3.35 to close at $31.60.

Eli Lilly

(LLY) - Get Report

said late Thursday that it will settle about 8,000, or 75%, of the legal claims against the company over its antipsychotic drug Zyprexa. Lilly said it would set up a fund not to exceed $690 million for plaintiffs to settle their claims. Lilly said it would take a pretax second-quarter charge of $700 million to cover the settlement. Eli Lilly fell 8 cents, or 0.1%, to $56.99.

In brokerage action, Sun Trust Robinson Humphrey downgraded



to neutral from buy, a day after

Computer Associates

(CA) - Get Report

said it will acquire the information technology company for about $350 million. Shares of Niku rose 6 cents, or 0.3%, to $20.72.

Overseas markets were mixed, with London's FTSE 100 adding 0.4% to 5030, while Germany's Xetra DAX added 0.4% to 4582. In Asia, Japan's Nikkei fell 1.1% overnight to 11,161, while Hong Kong's Hang Seng was unchanged at 13,898.

To view Aaron Task's video take on today's market, click here