Stocks Mixed as Profit-Takers Send Nasdaq Lower

Dow component General Motors rose $1.08 to $57.33. The world's top automaker reached an agreement with the main creditor of South Korea's Daewoo Motor to make an offer for assets and related businesses of the bankrupt car maker.

Crit Thomas, a portfolio manager for National City Investment Management Co., which oversees $25 billion, said he was "cautiously optimistic" the tech sector's downturn is temporary. "We've had a nice move in tech, we could just need some time to absorb that," he said.

Indeed, the market had headed higher since early April amid hopes that worse of the economic downturn had passed. The Federal Reserve has ratcheted down interest rates five times this year to help spark a recovery.

Economic Docket

With earnings worries weighing on stocks in the short term, Wall Street didn't take much heart from the latest data on consumer confidence.

The Conference Board said its broad index of consumer attitudes jumped to 115.5 in May, up from an upwardly revised 109.9 in April, showing Americans were still optimistic about the economy and the employment outlook. Economists polled by Reuters had forecast a 111.2 reading.

In a separate report, the government said Americans increased spending more quickly than their incomes grew in April, suggesting that economic weakness has not severely dented consumer buying behavior.

The Commerce Department reported personal income grew at a seasonally adjusted 0.3 percent annual rate in April, down from March's 0.5 percent pace. But spending on goods and services grew at a faster 0.4 percent pace, up from March's 0.2 percent rate.

Friday’s Highlights

On Friday, stocks fell in listless pre-holiday trading after the government said economic growth slowed more than previously thought and Federal Reserve Chairman Alan Greenspan warned the weakness could linger.

The New York Stock Exchange said it posted its slowest trading day of the year and the Nasdaq composite index said it had its second-slowest day of the year Friday as investors and traders headed home early in the day for a three-day weekend.

The Dow Jones industrial average lost 117.05 points, or 1.05 percent, to 11,005.37. The broader Standard & Poor's 500 Index declined 15.28 points, or 1.18 percent, to 1,277.89.The Nasdaq Composite Index fell 30.99 points, or 1.36 percent, to 2,251.03.

The Dow is up 2 percent, the S&P off 3.2 percent and the Nasdaq down 8.9 percent year to date.

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