US blue chips eased while the Nasdaq edged higher on Friday, as investors weighed a batch of mixed economic reports showing consumer sentiment dropped unexpectedly in May, while business activity in the US Midwest beat forecasts.
But trading was light ahead of a long holiday weekend.
Cisco Systems Inc and General Electric Co held back the Standard & Poor's 500 Index, while weakness in the biotechnology sector weighed on the Nasdaq. The S&P Biotechnology Index slipped 0.7 percent.
"People are just wrapping up what they need to do before the holiday weekend," said Jim Fehrenbach, head of Nasdaq trading at Piper Jaffray in Minneapolis.
"There was no new terrorism news, gas prices were up a bit but nothing that was very noteworthy, and none of the economic numbers are driving the market higher or lower," Fehrenbach said.
The Dow Jones industrial average shed 16.75 points, or 0.16 percent, to 10,188.45, while the broader S&P 500 Index inched down 0.60 of a point, or 0.05 percent, to 1,120.68, based on the latest available figures.
The technology-laced Nasdaq Composite Index added 2.24 points, or 0.11 percent, to 1,986.74, its sixth straight day of gains.
In economic news, a report showed US consumers slowed their spending pace in April while a key measure of inflation moderated, giving the Federal Reserve leeway to make only modest interest-rate hikes to keep inflation in check.
Other economic reports were mixed, with consumers losing confidence in May as gasoline prices surged and the war in Iraq dragged on, while another report showed business activity surged in the Chicago region.
Traders cautioned against reading too much into the market's swings, given that volume was very light before the long weekend. Most US financial markets will be closed Monday for the Memorial Day holiday.
"A lot of traders are not going to be carrying positions before the holiday, so we're seeing some unwinding," said Adam Tracy, director of listed trading at Thomas Weisel Partners in San Francisco. "There's definitely some trepidation about global activity over the weekend after the terrorist warnings we had, so it's not a time to show you have a lot of guts."
Each of the major market benchmarks posted its biggest weekly gain in a month. The Dow rose 2.2 percent and the S&P 500 gained 2.5 percent, each breaking a four-week losing streak. The Nasdaq added 3.9 percent.
For May, the Dow declined 0.4 percent, its third straight monthly decline. But the S&P 500 rose 1.2 percent and the Nasdaq gained 3.5 percent, each reversing two months of losses.
Trading was moderate, with 1.17 billion shares changing hands on the New York Stock Exchange, less than the 1.4 billion daily average for last year. About 1.22 billion shares were traded on Nasdaq, well below last year's 1.69 billion daily average.
El Paso Corp was among the New York Stock Exchange's most active issues, on news that a sharp cut in natural gas reserves could force the company to take a charge bigger than the $1 billion it already announced.
Shares of El Paso, a pipeline and energy production company that is restating its financial results after overcounting its natural gas reserves, fell 52 cents, or 6.7 percent, to $7.21.
Crude oil prices surged to end back near $40 a barrel, amid nervousness ahead of a June 3 meeting of the Organisation of Petroleum Exporting Countries in Beirut.
On the New York Mercantile Exchange, July crude settled at $39.88 a barrel, not far below a record $41.85 hit on May 17, the highest since the exchange launched the contract 21 years ago.
NYMEX June gasoline futures settled up 5.15 cents at $1.4367 a gallon, not far below its record of $1.47 set on May 20.
In mergers activity, Coeur d'Alene Mines Corp set out on Friday to woo shareholders of Wheaton River Minerals Ltd away from a rival takeover offer, spotlighting its cash sweetener and taking an early swipe at the competition. Shares of Coeur, the world's biggest silver producer, fell 37 cents, or 7.3 percent, to $4.69.
Ditech Communications Corp shares led gainers on the Nasdaq, a day after the telecommunications equipment maker posted quarterly results above analysts' forecasts, and said it saw improved gross profit margins as being sustainable. Ditech shares jumped 29.3 percent, or $4.67, to $20.59.
Novellus Systems Inc shares rose, a day after it raised its second-quarter revenue and profit targets, citing strength from memory manufacturers and chip makers in Japan, South Korea and the United States. Shares of Novellus, which makes semiconductor production equipment, shot up $1.91, or 6.1 percent, to $33.29.
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