An early rally in stocks fizzled, leaving major averages with modest gains on Friday, as Wall Street was torn between hope that U.S. economic data points to better times ahead and fear Europe's debt crisis will engulf major world economies.

Based on the latest available data, the Dow Jones industrial average <.DJI> was down 7.57 points, or 0.06 percent, at 11,861.24. The Standard & Poor's 500 Index <.SPX> was up 3.47 points, or 0.29 percent, at 1,219.22. The Nasdaq Composite Index <.IXIC> was up 14.74 points, or 0.58 percent, at 2,555.75.

(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)