Stocks fell on Friday after Federal Reserve Chairman Ben Bernanke stopped short of signaling more action to boost growth, disappointing investors who had hoped for a new stimulus program.

Bernanke said the Fed was prepared to use tools to spur economic growth, but did not announce any new policies. Hopes for new stimulus had contributed to a three-day rally earlier this week, though equities later sold off as expectations moderated.

At this stage, there's no help from Mr. Bernanke. The early read was nothing of any import or anything dramatic. The market is taking it as a negative, said Roger Volz, director of cash equities at BGC Financial in New York.

If we hold below 1,141 (on the S&P) at the close, I'm looking for us to retest recent lows around 1,127, he said.

The Dow Jones industrial average <.DJI> was down 107.77 points, or 0.97 percent, at 11,042.05. The Standard & Poor's 500 Index <.SPX> dipped 8.30 points, or 0.72 percent, at 1,150.97. The Nasdaq Composite Index <.IXIC> was up 7.79 points, or 0.32 percent, at 2,427.42.

Contributing to the negative tone, the government earlier reported the economy grew much slower than previously thought in the second quarter.

Technology stocks helped put the Nasdaq into positive territory, with Micron Technology Inc up 1.9 percent to $5.48, and Research in Motion Ltd adding 2.6 percent to $29.98.

Bank of America Corp off 2 percent to $7.50, the top drag on the Dow.

Insurance firm Travelers Cos Inc was the top loser on the Dow, falling 1.5 percent to $47.27. Hurricane Irene bore down on North Carolina, tens of thousands of people evacuated and East Coast cities including New York braced for a weekend hit from the powerful storm.

Tiffany and Co rose 5 percent to $66.26 after it raised its full-year outlook on rising sales.

(Editing by Jeffrey Benkoe)

Ben Bernanke