Updated from 4:10 p.m. ESTThe Nasdaq Composite broke a three-day losing streak and closed higher Friday, but a decline in IBM ( IBM) left the Dow Jones Industrial Average in negative territory. The Dow gave up 2.40 points, or 0.02%, to 12,565.53, while the Nasdaq, sharply lower the last two days, was up 8.10 points, or 0.33%, to 2451.31. The S&P 500 rose 4.13 points, or 0.29%, to 1430.50. For the third day in a row, a technology stalwart saw its shares sell off. This time it was IBM, whose stock fell 3.3% after its latest earnings report following the close Thursday. Software was a bright spot as IBM beat analysts' profit estimates for the fourth quarter, but hardware and microelectronics disappointed some company watchers. Revenue, like earnings, was stronger than expected at $26.3 billion, but that didn't prevent a selloff after hours. All told, the Dow was higher for the week by 9 points. The Nasdaq, meanwhile, lost 52 points, or 2.1%, and the S&P 500 was fractionally lower. Roughly 2.86 billion shares changed hands on the New York Stock Exchange. Advancers beat decliners by a 2-to-1 margin. Volume on the Nasdaq reached nearly 2.08 billion shares, with winners outpacing losers 3 to 2. "The markets finished the week on a generally positive note," said Michael Sheldon, chief market strategist with Spencer Clarke LLC. "More stocks gained ground than lost ground, which is a positive. Trading has been difficult so far this year as investors have looked for the latest leadership group to emerge. Next week, we'll continue to get a large number of earning reports, which should help determine investment returns for much of 2007."