Updated with closing prices and Nasdaq volume.
The major indices in New York closed in mixed territory Friday after data showed that while consumer sentiment and income have improved, consumers are choosing saving over spending.
closed higher with some help from Palm on what is likely to be one of the highest volume days of the year for the exchange.
Dow Jones Industrial Average
was down 34.01 points, or 0.4%, at 8438.39, while the
was lower by 1.36 points, or 0.2%, at 918.90. The Nasdaq Composite, however, gained 8.68, or 0.5%, to 1838.22.
The major indices put in their largest gains of the week on Thursday, offsetting steep losses from Monday and bringing them near neutral for the week. Ultimately, the Dow was down 1.3% and the S&P 500 was off by 0.1%, while the Nasdaq moved up 1.1% for the five-day period.
was the worst performer on the Dow, losing 2.8%. It was followed by
, down 1.9% and 1.5%, respectively.
The tech sector got a boost from smartphone maker
, which rose 17% after posting a wider-than-last quarter but narrower-than-expected loss.
The Dow and S&P 500, however, suffered as the market struggled with what to make of economic data. The Commerce Department said early Friday that personal income rose by a greater-than-expected 1.4% in May after an upwardly revised 0.7% increase a month prior. Spending increased 0.3%, in line with expectations after no change in April, while personal saving as a percentage of disposable personal income was 6.9% in May, up from 5.6% in April.
The University of Michigan gave some reason to believe consumers are feeling more comfortable, however. Its consumer sentiment index rose to 70.8 in June, an improvement over its preliminary estimate of 69 and also the 68.7 reading in May.
The Russell indices were rebalanced Friday. Their reconstitution is typically one of the heaviest trading days in the U.S. equity market as asset managers try to reconfigure their portfolios to reflect the indices.
Total volume on the Nasdaq was near 3.9 billion at the close on Friday, not including heavy after-hours trading, but would likely go higher with the final tally. That's well above the average year-to-date daily volume of 2.3 billion. More than 1 billion shares crossed over at the close Friday as fund managers trying to mimic the index rushed to get trades in at the closing prices, said says Anu Sharma, managing director of the Nasdaq OMX Market Intelligence Desk.
Aside from the activity around the rebalancing, the market is ripe with confusion, and that has helped lead to a sustained trading range, said Anu Sharma, managing director of the Nasdaq OMX Market Intelligence Desk. "You have this big debate of inflation vs. deflation, and I don't think money managers are really sure of which side to believe," he says. "At this point you have two valid arguments, and when there's that much uncertainty, the best thing to do is sit tight."
Banks made a few headlines Friday. Among them,
has run afoul of Japanese regulatory authorities. For the second time in the last decade, the bank has been ordered to suspend sales activities at its retail businesses -- from July 15 to Aug. 14 -- as it faces accusations of not doing enough to prevent money laundering. Shares closed unchanged at $3.03.
Also, Swiss giant
expects to report a second-quarter loss, albeit narrower than its first-quarter loss, and will raise about 3.8 billion Swiss francs, or roughly $3.49 billion, in a stock sale. Its shares gave up 5.2% to $12.30.
In other headlines,
was the worst performer on the Dow as Qantas Airways canceled orders for 15 787s, or Dreamliners, and
of 15 additional aircraft due to turbulent market conditions. Qantas said the decision was unrelated to news earlier this week that Boeing had further delayed the aircraft's first flight. Boeing shares fell 1.5% to $41.88.
Meanwhile, crude oil futures fell 87 cents to $69.16 after initially rising after militants said they attacked a
Royal Dutch Shell
wellhead in Nigeria, raising concerns about supply.
The dollar weakened against the pound, euro and yen after China's central bank called again for a "super-sovereign reserve currency," and suggested the International Monetary Fund manage part of members' foreign reserves.
Stocks overseas were mixed. In Europe, London's FTSE 100 and the DAX in Frankfurt were losing 0.3% and 0.5%, respectively. In Asia, the Nikkei in Japan added 0.8%, and the Hang Seng in Hong Kong closed 1.8% higher.
Longer-dated Treasuries were mixed. The 10-year was adding 4/32 to yield 3.53%, while the 30-year fell 1.5/32, yielding 4.34%.