Dow stocks slip slightly

NEW YORK -- Investors took a cautious approach Friday ahead of next week's rush of earnings reports, sending stocks lower for the third time in four sessions. Mixed economic and earnings news contributed to the sluggish performance.

"The market is nervous that in the near term, with earnings coming out in the next couple of weeks, it will be a bumpy ride," said Robert Harrington, co-head of listed block trading at UBS Warburg.

The market's major gauges all finished lower on Friday and posted weekly losses as well. The Dow Jones industrial average was down 17.92, or 0.2 percent, at 8,203.41. In four sessions, the Dow -- along with the other key indexes -- has had just one gain, rising 23.39 on Thursday. For the week, the Dow forfeited 0.9 percent.

The Nasdaq composite index fell 6.76, or 0.5 percent, to 1,358.85. The Standard & Poor's 500 index declined 3.28, or 0.4 percent, to 868.30. For the week, the Nasdaq lost 1.8 percent and the S&P gave up 1.2 percent.

Investors are paying close attention to the economy and first- quarter earnings results, the bulk of which will be released during the next two weeks. Analysts say investors are less concerned about the war with Iraq now that allied success seems assured.

Analysts expect the next few weeks to bring choppy trading but no steep declines as investors already anticipate that earnings will be weak.

"There are concerns about earnings, because oil prices were high and consumer spending was generally pretty weak" in the first three months of 2003, said Jeff Kleintop, chief investment strategist for PNC Financial Services Group in Philadelphia. "But we're braced, at this point, for a fairly soft earnings season, and it's not going to be dismal."

Friday's economic news was mixed, adding to the market's lackluster tone.

The Commerce Department said retail sales increased by 2.1 percent in March, much better than the 0.6 percent rise economists predicted and an improvement from the 1.3 percent drop in February. Much of the strength was owed to automobile sales, getting a boost from positive financing and other incentives.

And consumer sentiment improved more than expected in recent weeks, according to the University of Michigan's midmonth survey as reported by Dow Jones Newswires. The report on consumer sentiment for April showed an increase to 83.2 from 77.6 in March, well above expectations for a smaller increase to 78.0.

On the downside, the Labor Department reported wholesale prices jumped by 1.5 percent last month due to a surge in energy costs leading up to the war. The increase in the Producer Price Index, which measures costs before they reach consumers, was much bigger than the modest 0.3 percent advance economists had forecast.

Earnings news was also varied.

Baker Hughes fell 59 cents to $29.80 after warning of lower-than- anticipated profits. But Juniper Networks rose 68 cents to $9.09 after beating first-quarter earnings estimates by a penny a share.

Auto stocks saw some gains following the retail sales report. General Motors rose 33 cents to $34.83.

But some retailers fell for a second day, adding to losses from Thursday when many of them reported disappointing sales for March. Wal-Mart fell $1.60 to $52.98.

Declining issues had a narrow lead over advancers on the New York Stock Exchange. Consolidated volume was extremely light at 1.38 billion shares, below an already slight 1.57 billion on Thursday.

The Russell 2000 index, the barometer of smaller company stocks, fell 1.39, or 0.4 percent, to 371.30.

Overseas, Japan's Nikkei stock average finished Friday down 2.1 percent. In afternoon trading in Europe, France's CAC-40 rose 1.1 percent, Britain's FTSE 100 inched up 0.1 percent and Germany's DAX index gained 1.4 percent.

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