US stocks erased gains and were little changed on Friday as concerns about fewer buyout financings and the subprime mortgage industry hurt financial companies, offsetting the market's optimism about inflation and the economy. Oil's rise to $71 a barrel and investors taking profits at the end of a strong second quarter also contributed to the decline.
But trading volume was light, and with July 4 falling in the middle of next week, some market participants opted to start the Independence Day holiday early by taking a long weekend.
The Dow Jones industrial average was up 2.03 points, or 0.02 percent, at 13,424.31. The Standard & Poor's 500 Index was up 0.50 point, or 0.03 percent, at 1,506.21. The Nasdaq Composite Index was up 0.81 point, or 0.03 percent, at 2,609.18. Among financial stocks, Merrill Lynch & Co dropped 3.2 percent and ranked among the biggest drags on the Standard & Poor's 500 index. An S&P financial index fell 0.7 percent.