By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks opened lower and then tipped slightly higher on Friday, a day after the S&P 500 index had its best session since Jan. 2, with investors adopting a cautious stance ahead of a report on consumer confidence.

"In recent weeks, big one-day stock-market rallies have lacked buy-side follow-through over the next few days. We need to see a steady flow of better-than-expected economic or corporate news to propel the stock market back to the pace of the rally seen between November and mid-May," wrote Fred Dickson, chief investment strategist at Davidson Companies, in emailed research.

The Dow Jones Industrial Average (DJI) was down 2 points at 15,172.

The S&P 500 index (SPX) gained 1 point to 1,637.

The Nasdaq Composite (RIXF) rose 1 point to 3,446.

Decliners just outpaced advancers on the New York Stock Exchange, where 48 million shares traded as of 9:40 a.m. Eastern.

Composite volume came to 152 million.

Groupon Inc. (GRPN) jumped 7.7% after the daily-deal site drew an upgrade by Deutsche Bank AG.

Smith & Wesson Holding Corp. (SWB) rose 5.8% after the gun manufacturer reported initial earnings above expectations.

Eli Lilly & Co. (LLY) fell after halting a trial of an experimental Alzheimer's drug.

Smithfield Foods Inc.'s (SFD) shares held steady after the hog producer reported a steep drop in net profit.

Ahead of Wall Street's start, stock-index futures retained mild losses after the Labor Department reported producer prices rose 0.5% in May, the first increase in three months, and then a separate report had U.S. industrial production unchanged in May.

On Thursday,. late-session gains kicked in after Wall Street Journal reporter Jon Hilsenrath, considered an influential voice on central-bank policy, said Federal Reserve Chairman Ben Bernanke will likely choose next week's meeting to try to soothe market fears that the central bank is headed towards the easing exit in a hurry.

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