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NEW YORK (TheStreet) -- Stocks were slightly lower on the final trading day of May as revised figures showed the economy contracted in the first quarter.

The S&P 500 fell 0.22%, the Dow Jones Industrial Average slipped 0.31%, and the Nasdaq declined 0.26%.

First-quarter gross domestic product, originally seen up 0.2%, was revised down to negative 0.7% in a second estimate. The contraction was slightly narrower than economists had expected, though marked a stark reminder of how bad economic growth truly was at the start of the year.

The value of inventories increased by $95 billion, down from a previously estimated increase of $110.3 billion. Exports fell 7.6%, while imports were revised up to 5.6% from 1.8%, leading to a larger trade deficit which reduced GDP.

Corporate profits fell $125.5 billion in the first quarter after a $30.4 billion decline in the fourth quarter. Adjusted pretax corporate profits fell 5.9%, its biggest decline since 2008.

Economists expect the economy to bounce back in the latter half of the year, and second-quarter data including monthly housing figures support this. Second-quarter GDP is expected to rise 3%.

"Second estimates of GDP are generally "old news" and today's report falls along those lines," said BTIG Research chief strategist Dan Greenhaus. "The (Federal Reserve), market participants and just about everyone believes first-quarter issues were transitory in nature and as such, a revision into negative territory is unlikely to affect the broader debate."

Chicago PMI fell to 46.2 in May from 52.3 in April, the lowest reading since February. Economists had expected the measure to hover at 53.1 in May after new orders recorded their largest monthly swing in more than 30 years in April.

Stocks closed only slightly lower Thursday, recovering from heavier losses sustained earlier in the day. Crude oil, which had been pressured earlier in the session, reversed course by the afternoon and closed higher. Click here for more.

U.S. markets weren't selling off Friday to the extent of Europe. Germany's DAX declined 0.6% and France's CAC 40 gave up 0.8% as 'Grexit' fears took focus.

Money is exiting Greek banks at a rapid pace as citizens withdraw money as fears of a potential default mount. Deposits at Greek banks fell to their lowest level since 2005 while 5.6 billion euros was pulled in April. It is looking less likely Greece will be able to fulfill a repayment to the International Monetary Fund by June 5. Click here for more.

Intel (INTC) led the Dow after reportedly nearing a deal to buy Altera (ALTR) , according to the New York Post, adding further fuel to reports of deal negotiations between the two companies. Intel could offer Altera $15 billion, a deal that would value Altera shares at $54, a 15% premium to Thursday's close. Intel shares rose more than 1% on Friday, while Altera increased nearly 6%. Click here for more (paywall).

GameStop (GME) jumped nearly 8% after beating analysts' estimates on its top- and bottom-lines. The company earned 68 cents a share, 10 cents higher than expected, while sales increased 8.1%.

Splunk (SPLK) tumbled more than 6% after reporting a wider-than-expected loss of 57 cents a share in its first quarter. Analysts had expected the software developer to report a loss of 43 cents a share. 

Snapchat is reportedly in the process of raising $650 million in a new round of financing. That would value the app developer at $16 billion, according to CNBC.

JPMorgan (JPM) shares were on watch after reports the bank is in the process of thousands of job cuts. The company could cut more than 5,000 jobs by next year, according to Dow Jones.

Amazon (AMZN) is reportedly planning to expand its private-label brands to include grocery items, according to The Wall Street Journal. The company already offers private-label batteries and diapers. Click here for more.