Updated from 4:09 p.m.

Stocks ended narrowly mixed Friday as investors failed to find direction in several positive economic reports and news of accounting issues at

Xerox

(XRX) - Get Report

.

The

Dow Jones Industrial Average closed down 27 points, or 0.3%, to 9243. The

Nasdaq gained 6 points, or 0.4%, to 1465. The

S&P 500 ended down a point, or 0.1%, at 989.

Two key spending indicators were atop Friday's economic docket. The University of Michigan issued its

consumer sentiment index for June, which came in at 92.4. Wall Street was expecting a reading of 90.8. Earlier, the Commerce Department said

personal income rose 0.3% in May, matching economists' expectations, compared with a 0.2% increase in April. Spending fell 0.1%; economists had been expecting an unchanged reading.

Several software firms kept the Nasdaq afloat Friday afternoon as the semiconductor group fizzled.

Intuit

(INTU) - Get Report

continued to execute its acquisition strategy by purchasing privately held business software maker Eclipse. The company also raised its full-year revenue and earnings targets, sending shares up 4.5% to $49.72. Shares of

Manugistics

(MANU) - Get Report

climbed 6.8% to $6.11 despite posting a wider first-quarter loss due to slumping sales. The Dow Jones U.S. Software index fell 1.5%

The top story of the day involved copier manufacturer Xerox, which was down sharply after reporting a greater-than-expected revenue restatement for the five years ending in 2001. The company, which paid $10 million to settle

SEC

charges related to the restatement in April, said about $1.9 billion of revenue recorded during the period has been reversed and will be included in future quarters. The error involved revenue booked as equipment sales and was larger than initially believed due to a change in lease accounting in Latin America. Xerox traded as low as $6.10, but managed to finish the session down only $1.03, or 12.9%, at $6.97.

Although the broader market was trading higher, several negative preannouncements did create pockets of weakness.

Lightbridge

(LTBG)

, a maker of telecommunications software, said it would cut about 65 jobs, or 7% of its workforce, and warned that second-quarter revenue would fall short of expectations, citing its exposure to

WorldCom

(WCOME)

. The stock slipped 9.8% to $8.21

Elsewhere, Irish drugmaker

Elan

(ELN)

said that rival

Eon Labs

(ELAB)

received approval from the Food and Drug Administration for a generic version of its Zanaflex drug, a treatment for muscle spasms. The announcement sent shares of the Dublin-based company down 17.1% to $5.47.

Eclipsys

(ECLP)

, a software provider for health care companies, warned that it would incur an unexpected second-quarter loss due to delays in a number of contract negotiations. The news sent shares tumbling 45.2% to $6.56.

Cerner

(CERN) - Get Report

, another health care software company, saw its shares drop 3.4% to $47.83 after Merrill Lynch lowered its investment rating on the stock.

There was some positive news from the retail sector this morning.

Nike

(NKE) - Get Report

, the world's largest athletic footwear maker, said fourth-quarter earnings rose sharply on strong U.S. sneaker sales. The company, headquartered in Beaverton, Ore., posted net income of $208.4 million, or 77 cents a share, from $162.7 million, or 60 cents a share, a year earlier. Analysts were expecting the company to earn 75 cents a share. Revenue for the quarter rose 8% to $2.68 billion from $2.48 billion. Nike traded up 4.3% to $53.65.

U.S. Treasury issues were higher, with the 10-year note up 6/32 to 100 19/32, yielding 4.80%.

Overseas markets were higher, with London's FTSE 100 recently gaining 2.6% at 4656 and Germany's Xetra DAX up 2.9% at 4383. Japan's Nikkei 225 rose 3.5% to 10,621, while the Hang Seng closed up 0.8% to 10,598.