Stocks slightly pared losses after data on Friday showed business activity in the U.S. Midwest grew more than expected this month as businesses boosted employment and orders.

The Dow Jones industrial average <.DJI> was down 68.42 points, or 0.65 percent, at 10,398.74. The Standard & Poor's 500 Index <.SPX> was down 8.38 points, or 0.76 percent, at 1,093.15. The Nasdaq Composite Index <.IXIC> was down 24.05 points, or 1.07 percent, at 2,227.64.

(Reporting by Angela Moon; Editing by James Dalgleish)