Stocks mostly rose on Friday, led by solid earnings from McDonald's, General Electric and Microsoft, but declines in banks and technology shares pulled indexes from their day's highs.
The Nasdaq Composite fell as SanDisk Corp
As earnings season moves into high gear, the first wave of corporate results has been substantially stronger than expected. About 81 percent of S&P 500 companies that have reported so far have beat expectations, according to Thomson Reuters data.
The impressive rate of beats comes amid lowered expectations, but the earnings have helped stocks regain their footing after a recent pullback on less-than-inspiring U.S. economic figures and renewed worry about Europe's debt crisis.
Analysts said the weakness heading into Friday's close was in part because of caution ahead of an early indicator of China's industrial activity, expected late Sunday.
We already know earnings are coming in better and the market has been up quite a bit, said Doreen Mogavero, president and chief executive of Mogavero Lee & Co. in New York.
The private-sector manufacturing data from China will be setting the pace for next week, so people are taking some profits off the table, she said.
A weaker level in China's HSBC flash purchasing managers index late in March sent equity and other risk markets lower.
The Dow Jones industrial average <.DJI> rose 65.16 points, or 0.50 percent, to 13,029.26. The S&P 500 Index <.SPX> gained 1.61 points, or 0.12 percent, to 1,378.53. The Nasdaq Composite <.IXIC> dropped 7.11 points, or 0.24 percent, to 3,000.45.
For the week, the Dow gained 1.4 percent, the S&P 500 added 0.6 percent and the Nasdaq fell 0.4 percent, down for a third week running.
Bank of America Corp
General Electric Co's
Industrial conglomerate Honeywell International Inc
The S&P industrial sector index <.GSPI>, up 0.8 percent, was a top boost to the S&P 500.
About 6.7 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE Amex, just shy of the 6.78 billion daily average so far this year.
Almost two issues rose on the NYSE for every one that fell, and despite the day's decline, three issues rose for every two that fell on the Nasdaq.
(Editing by Padraic Cassidy)