Updated from 4:31 p.m. EST

Stocks closed slightly lower for the day, but mostly higher for the week, as investors let modest gains slip away in the last hour of trading following a broad-based rally Thursday.

The Dow Jones Industrial Average lost 5.85 points, or 0.1%, to 10,212.97; the S&P 500 slipped 1.16 points, or 0.1%, to 1108.03; and the Nasdaq fell about 7.15 points, or 0.4%, to 1960.02, failing to notch its first three-day winning streak since the first week of February.

Trading volume on the New York Stock Exchange was a light 1.32 billion shares, while 1.57 billion shares changed hands on the Nasdaq, also something of a slow day. Advancing stocks beat out declining ones by a 5 to 4 margin on the NYSE, but losers and winners were about even on the Nasdaq.

For the week, the Nasdaq and Dow closed modestly higher, snapping two-week skids. The S&P, however, registered a small loss, its third losing week in a row. The Nasdaq was the big winner for the week, adding more than 1%, while the blue-chip index gained about 0.2%. The S&P finished about 2 points lower than the week before.

John Bollinger, president of Bollinger Capital Management, thinks the long-awaited correction has hit its low, but the market needs upside confirmation before things can really get going again. "I think there's a great deal of uncertainty and that's why you're seeing this relative quiet here," Bollinger said.

"The big variable that they are facing is this quarter's earnings reports, which are still on the horizon. Even though there's every indication that they're going to be okay, the worry is understandable because we're trading at such high levels of valuation and the upcoming earnings reports have to be OK for things to work out here," said Bollinger.

"I thought that the market digested all the terrorism news of late very well," he added. "And a market that's trading at this high relative level and can digest news like that seems to me to be an awfully strong market."

The University of Michigan's consumer sentiment index rose unexpectedly to 95.8 in March, up from the preliminary 94.1 reported earlier this month. Consensus estimates were forecasting a drop to 93.5.

"There's no doubt that the economy is slowing down to more moderate growth," added Hyman. "First-quarter earnings will determine a good part of the trading behavior for the rest of the year, and I'm still optimistic that earnings will be strong."

In other markets, the 10-year Treasury note lost 26/32, yielding 3.83%, after a modest loss yesterday. The dollar was lower against the Japanese yen and the euro.

Overseas, London's FTSE 100 was down 0.4% at 4,357, while Germany's Xetra DAX lost 0.3% to 3,822. In Tokyo, the Nikkei closed at a 22-month high, gaining 2.1% to 11,770.65. The Hang Seng in Hong Kong fell 0.3% to 12,481.19.

On the economic front, personal income rose 0.4% in February, slightly more than expected, according to the Commerce Department, and up from a revised 0.3% gain in January. Personal spending slowed unexpectedly for the month, rising at only 0.2%. Economists had forecast 0.5% growth. The government revised January's increase upward from 0.4% to 0.5%.

In corporate news, E*Trade ( ET) closed up 40 cents a share at $13.10, a 3.15% rise, after Standard & Poor's announced that the online brokerage would replace FleetBoston Financial ( FBF) in the S&P 500.

Albertson's ( ABS) agreed to buy the U.S. operations of U.K. supermarket chain J. Sainsbury for about $2.5 billion. The grocer said the deal, which includes about $368 million of capital lease assumption, would expand its national presence and add to its expected 2004 earnings of $1.30 to $1.40 a share. It closed down 78 cents a share at $21.88, a 3.44% drop.

Yahoo! ( YHOO) agreed to buy European online-comparison-shopping service Kelkoo for about $575 million in cash. The stock closed up 19 cents a share at $47.14, a 0.78% rise.

EchoStar Communications ( DISH) swung to a fourth-quarter profit after adding subscribers to its Dish Network satellite television service, but failed to meet analysts' expectations. The consensus estimate was for earnings of 9 cents a share, but the company reported a profit of a penny a share, up from last year's loss of $1.13 a share. Shares closed down 94 cents at $33.70, a 2.71% drop.

Stocks rallied Thursday, fueled by the semiconductor sector. The Nasdaq posted its largest gain in over a year, up 57.69 points, or 3%, to 1967.17; the Dow jumped 170.59 points, or 1.7%, to 10,218.82, posting its best single-day point gain since last October; and the S&P 500 added 17.95 points, or 1.6%, to 1109.28.

No economic releases are scheduled for Monday. Traders will be looking for Friday's employment report on March due out from the government. Nonfarm payrolls are expected to rise 100,000, up from the disappointing 21,000 new jobs created in February. Economists expect the unemployment rate to remain at 5.6%.

On the earnings front Monday, JoS. A. Bank Clothiers ( JOSB) is expected to report first-quarter earnings of 83 cents a share, down from 59 cents a share in the same quarter last year. Shares closed up 44 cents at $37.22. a 1.2% rise.

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