By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks pared earlier gains
Friday, with the Nasdaq Composite dipping into negative territory,
as another steep selloff in biotechs weighed on the index.
Stocks rallied in early trade after economic data released ahead
of the bell showed consumer spending and incomes rose broadly in
line with forecasts. But gains petered out by mid-afternoon, with
all the main indexes set for modest weekly declines.
The S&P 500 (SPX) was 6.5 points, or 0.4%, at 1,855.48 and
set for a modest weekly decline.
The Dow Jones Industrial Average (DJI) at session highs jumped
as much as 145 points, but pared most of those to trade 33 points,
or 0.2%, higher at 16,295.67. About two thirds of all members of
the index were trading higher, with Microsoft and Exxon Mobil
leading the rest.
The Nasdaq Composite (RIXF) dipped in and out of negative
territory and was last 2 points higher at 4,152.68. Biotech stocks
that took another hit on Friday weighed on the composite. The
tech-heavy index is set to record a weekly loss after sharp
declines earlier in the week.
Follow MarketWatch's live blog of Friday's stock-market
action.
"Today's economic data was as expected, but compared to the last
few months there is an improvement, suggesting that the economy's
slowdown this year is weather-related and temporary," said Kate
Warne, investment strategist at Edward Jones.
"This was enough good news for stocks to go higher this
morning," Warne added.
Consumer spending rose in February at the fastest rate since
November as Americans spent more on health care and utilities, but
in a negative sign, purchases of big-ticket items fell for the
third straight month. Personal income also ticked up in
February.
As the first quarter of the year approaches the finish line with
only two trading sessions left, portfolio managers are busy
adjusting their positions. Typically, the end March tends to be
volatile.
Next week will offer a barrage of economic data, which is
expected to have less weather-related distortions and provide a
better view of the economy.
Separately, consumer sentiment declined to a final March reading
of 80 -- the lowest level since November -- from a final February
level of 81.6, according to a Friday report on a gauge from the
University of Michigan and Thomson Reuters. A preliminary March
reading pegged the level at 79.9. Economists polled by MarketWatch
had expected a final March level of 81. Economists watch sentiment
levels to get a feeling for the direction of consumer spending.
Read: Spotlight on the economy.
In corporate news, BlackBerry Ltd. (RIMM) shares slumped 5%
after reporting an adjusted per-share loss that was less than
expected. The company said it anticipates maintaining a strong cash
position and is targeting break-even cash-flow results by the end
of fiscal 2015.
Finish Line Inc. (FINL) rose 2.2% after the athletic-gear
retailer reported its fiscal fourth-quarter earnings rose 25%.
Heavy losses among biotech stocks dragged the Nasdaq Composite
down. Gilead Sciences, Inc (GILD) fell 4.3%. the Nasdaq
Biotechnology index fell 2.6%.
Amazon.com Inc. (AMZN) shares gave up earlier gains and were
slightly lower after reports that the company plans to offer free
streaming television and music videos to its customers. The firm
had previously planned to charge for the members-only service,
reported The Wall Street Journal. Amazon has denied the
reports.
Shares of Restoration Hardware Holdings Inc. (RH) jumped 10%
after the high-end home furnishings retailer topped Wall Street
estimates and issued a healthy outlook.
There are also a number of initial public offerings. CBS Outdoor
Americas (CBSO) rose 6.2% on the first day of trading.
Elsewhere, Asian markets ended the week mostly higher after
Chinese Premier Li Keqiang's latest comments, which some analysts
interpreted as a hint of upcoming easing measures to aid the
slowing economy. Li said China should pay great attention to the
problems and difficulties in the economic development and shouldn't
overlook "downward risks," according to state-run Xinhua News
Agency.
The positive mood also helped lift European equities, with all
major national benchmarks trading in positive territory. Gold
prices were under pressure again, oil prices rose (CLK4), while the
dollar (DXY) moved slightly higher.
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