NEW YORK (CNNfn) - U.S. stocks ended little changed to slightly lower amid light trading Friday as investors took to the sidelines ahead of next week's Federal Reserve meeting on interest rates.
The Nasdaq composite index edged lower, breaking a five-session winning streak but still ending higher on the week. The Dow Jones industrial average dipped slightly on losses to drug, tobacco and energy companies that were singled out for criticism by Vice President Al Gore.
 But the session was characterized mostly by the kind of quiet action typical when a central bank policy makers meeting nears.
"Why would you make a big bet before a meeting you've been waiting for since the end of June?" asked Art Hogan, chief market analyst at Jefferies & Co.
After climbing every day since last Friday, the Nasdaq shed 10.60 points to 3,930.27, rising 3.6 percent on the week. The Dow fell 9.16 points to 11,046.48 and gained 0.17 percent over the last five sessions. The S&P 500 lost 4.37 to 1,491.70, but climbed 1.3 percent on the week.
 More stocks fell then rose Friday. Declining issues on the New York Stock Exchange topped advancing ones 1,609 to 1,179, as trading volume reached a lackluster 816 million shares. Nasdaq losers beat winners 2,091 to 1,874, as more than 1.4 billion shares changed hands.
In other markets, Treasurys edged higher. The dollar rose against the euro but was flat versus the yen.
Fed ahead
In economic indicators Friday, the nation's trade deficit widened to a record $30.62 billion in June as Americans' demand for imported good once again surged. But the government figures, now more than a month old, had little market effect.
Investors instead are focused on Tuesday, when the Federal Reserve meets to set interest rates. Economists expect the central bank to leave rates steady after tightening credit six times since June 1999. A string of data showing the economy has cooled means Fed inflation fighters have little reason to keep raising borrowing costs.
Some analysts say it's possible that the Fed's next move after August could be to cut rates, an action that's typically good for stocks.
 Paul McManus, director of research at Independence Investment Associates, is among those analysts. He cites the falling stock prices that can slow consumer spending and alleviate inflation concerns.
"The Nasdaq's been pretty tame," he said, referring to the index's negative performance in 2000. "And that's the thing that was bothering Alan Greenspan at the beginning of this year."
Intel powers Nasdaq
Gains to Intel and Sun Microsystems helped stem the Nasdaq's losses Friday.
Intel (INTC: Research, Estimates), which has nearly doubled over the last year, climbed 1/2 to 70-9/16, nearing its highest levels in 52 weeks. Merrill Lynch analyst Joe Osha made positive comments on the entire chip sector, saying global revenue could grow by 26 percent next year.
Sun Microsystems (SUNW: Research, Estimates) jumped 2-15/16 to 122-3/8, a 52-week high. The maker of microprocessors and computer systems announced a 2-for-1 stock split for shareholders of record Nov. 9. Sun shares have soared more that 243 percent in the last year, making it one of the best performing of Nasdaq's large capitalization stocks.
At the same time, remarks from Vice President Al Gore appeared to hurt some Dow stocks such as drug makers and tobacco companies.
 In accepting the Democratic presidential nomination late Thursday, Gore made comments suggesting that the powerful industries could face added regulation under his administration.
"Big tobacco, big oil, the big polluters, the pharmaceutical companies, the HMOs - sometimes you have to be willing to stand up and say 'no' so families can have a better life," Gore said in Los Angeles.
"The only thing that's different today versus yesterday is Al Gore went out of his way to attack the drug companies," said Alex Zisson, a pharmaceutical analyst at Chase H&Q. "Any time there's a lot of rhetoric, that's going to weigh on the stocks."
Among Dow losers, Merck (MRK: Research, Estimates) fell 2 to 71-15/16, Johnson & Johnson (JNJ: Research, Estimates) lost 3/4 to 96-1/4, Philip Morris (MO: Research, Estimates) tumbled 1-9/16 to 32-5/16, and Exxon-Mobil (XOM: Research, Estimates) declined 7/8 to 82-15/16.
Chase H&Q's Zisson said he will remain neutral on the drug sector until at least after the elections in November.
Also weighing on the Dow, SBC Communications (SBC: Research, Estimates) shed 1-7/8 to 39-11/16. The losses came after a group of Houston-area Internet users filed a lawsuit against the company claiming it deliberately slowed the speed at which customers connect to the Internet.
But GM (GM: Research, Estimates) jumped 3 to 68-7/16. Financier Carl Icahn told executives at the nation's largest automaker he intends to acquire more than $15 million worth, but possibly up to 15 percent, of the company's stock.
AT&T (T: Research, Estimates), one of the Dow's worst performing stocks this year, was unchanged at 32-1/14. The stock got no lift after The Wall Street Journal reported Friday that the chiefs of AT&T and British Telecom have held discussions about a possible merger.
The day's action comes amid a wavering time on Wall Street. Few consistent leaders have emerged this summer as investors rotate in and out of various sectors on an almost daily basis. Many don't see this rotation ending until certainty emerges over how much profit growth slows in the second half of the year.
Still, Tony Dwyer, market strategist at Kirlin Holdings, told CNNfn's market coverage that the economic picture makes the outlook positive for stocks. (374K WAV) (374K AIFF) 
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