Updated from 3:23 p.m. EDT

Stocks ended a somewhat choppy session with mixed results Friday, with blue-chips posting modest gains but tech issues unable to finish in positive territory.

The Dow Jones Industrial Average closed with a gain of 33.43 points, or 0.4%, to 8745.45. The Dow had been down around 130 points earlier. The Nasdaq gave up 10.40 points, or 0.8%, to 1306.12, and the S&P 500 tacked on 3.18 points, or 0.4%, to 908.64.

Advancing issues beat decliners 5-4 on the New York Stock Exchange but Nasdaq winners trailed losers by the same margin.

Among sectors, the Philadelphia Stock Exchange Gold & Silver Index was the strongest group with a gain of 7%. Oil shares and biotechs were also higher. Semiconductor stocks, telecoms and networking issues were lower.

The Dow entered Friday sitting on its biggest three-day gain in 15 years after rising 256 points, or 3%, to 8712 Thursday on optimism about a Federal Reserve rate cut and a fiscal bailout for Brazil. The Nasdaq rose 2.78%, or 35.62 points, to 1316.52, while the S&P 500 gained 3.27%, or 28.69 points, to 905.46.

For the week, the Dow gained 5.2%, the S&P rose 5.1%, and the Nasdaq climbed 4.7%.

A government report Thursday showing inflation remains under control prompted speculation that the Fed will cut interest rates when its policy board meets next Tuesday. A slew of recent reports has caused many to worry the economy is heading into another recession, dragging down stocks before this week's rally.

The Fed has left rates unchanged for the last few months after taking them down to their lowest levels in 40 years in the spring.

Another report Friday morning showed second-quarter productivity slightly better than expected. The indicator is a favorite of Fed Chairman Alan Greenspan, but it did little to goose stocks.

As if to remind the market about its other big headache, corporate corruption, WorldCom last night said the extent of its bad accounting was about double what it estimated shortly before filing for bankruptcy.

The company said the irregularities go back to 2000 and involve some of the wrongly capitalized expenses that constituted the first restatement, plus new issues such as incorrect treatment of reserve reversals and other matters.

Another ongoing drama is the insider trading case of former ImClone ( IMCL) CEO Sam Waksal and the possible involvement of his friend Martha Stewart, head of Martha Stewart Omnimedia ( MSO).

Friday's Wall Street Journal says a Connecticut real estate agent who was traveling with Stewart the day she sold a 4,000-share block of ImClone stock is now cooperating with federal investigators. Stewart has repeatedly said the sales were part of a pre-existing stop-loss order and had nothing to do with a negative Food and Drug Administration decision that came out shortly after she got out of the shares.

Tech shares were pressured by an earnings warning from storage firm Emulex ( ELX). The company matched earnings expectations for the second quarter but said revenue in the current period could be as much as $7 million below existing forecasts. The shares ended down 32% to $16.10.

Brocade ( BRCD) and QLogic ( QLGC) were both off more than 11% and 8%, respectively. Another big storage name, EMC ( EMC), was down 3%.

Treasuries were higher around 4 p.m. EDT, with the 10-year gaining 1 3/32 to 100 29/32 to yield 4.260%. The bond was up 1 22/32 to 103 28/32 and yielding 5.114%.

European shares were mostly stronger. London's FTSE was up 1.9% to 4322, and Germany's Xetra DAX was better by 2.2% to 3761. Asian shares were higher, as Japan's Nikkei rose 2% to 10,000, and the Hang Seng was up 0.5% to 10,014.