U.S. stocks pared losses and the Dow briefly turned positive on Friday as worries about a surprise increase in the Federal Reserve's discount rate were offset by optimism about data showing consumer prices rising less than expected in January.

The Dow Jones industrial average <.DJI> was down 5.74 points, or 0.06 percent, at 10,387.16. The Standard & Poor's 500 Index <.SPX> was down 0.73 points, or 0.07 percent, at 1,106.02. The Nasdaq Composite Index <.IXIC> was down 4.22 points, or 0.19 percent, at 2,237.49.

(Editing by Theodore d'Afflisio)