Updated from 4:08 p.m. EDT

Stocks' recent seesaw act took a new twist Friday as Google's ( GOOG) huge quarter emboldened technology bulls, while the Dow Jones Industrial Average struggled with losses.

The Nasdaq Composite closed with a gain of 14.10 points, or 0.68%, to 2082.21, reflecting a 12.1% jump in Google. The Dow, stuck with a 9.5% hammering in Caterpillar ( CAT), lost 65.88 points, or 0.64%, to 10,215.22. The S&P 500 gained 1.79 points, or 0.15%, to 1179.59.

The Dow was down 0.7% for the week. The S&P 500 has lost 0.59%, and the Nasdaq gained 0.84% behind the strength of tech.

"The market this week has been like watching a ping-pong match," said Paul Mendelsohn, chief investment strategist with Windham Financial. "We can sum this week up as a stock-picker's market. If you got the wrong stocks, you got beaten up. There's optimism on the up days and depression on the down days. I'm leaving this week wondering what the catalyst will be to really get us started."

About 1.85 billion shares traded on the New York Stock Exchange, with advancers beating decliners by a 2-to-1 margin. Trading volume on the Nasdaq was 1.79 billion shares, with advancers outpacing decliners 3 to 2.

Oil, whose 5% slide over the past three sessions has been a major contributor to the volatility in stocks, fluctuated around the $60-a-barrel level Friday before closing up 61 cents to $60.63. Still, crude prices fell 2.2% for the week. Unleaded gasoline was up 2 cents at $1.63 a gallon. Energy shares were hammered on Thursday by a more-than-$1 decline in oil, sending the Dow to a 133-point loss.

"The leading group all year has been energy, so as the price of oil keeps falling, it hurts the averages," said Larry Wachtel, senior market analyst with Wachovia Securities. "That's the conundrum we're facing. If the money was shifting out of oil stocks into something else we'd be fine, but it doesn't seem to be going into any other sector."

Michael Sheldon, chief market strategist with Spencer Clarke, says that "the recent decline in unleaded gasoline futures, if sustained, should lead to a drop in retail gasoline prices at the pump and could help boost consumer confidence in weeks ahead."

In other markets, the 10-year Treasury was up 13/32 in price to yield 4.38%, while the dollar eased against the yen and euro.

"With nothing on the economic calendar today, the bias was to go down in yields," said John Canavan, market analyst with Stone & McCarthy Research Associates. "Thin trading and a bullish technical situation, combined with improved psychology, gives a bias to the upside. As soon as we went down through the technical level of 4.42%, it spurred a lot of buying."

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