NEW YORK (CNN/Money) - Stocks managed to eke out gains Friday, but the major markets slipped in tandem for the first time in six weeks, as investors regrouped ahead of the holiday weekend.

The Nasdaq composite (up 2.54 to 1510.09, Charts) closed 0.2 percent higher, while the Dow Jones industrial average (up 7.36 to 8601.38, Charts) and the S&P 500 index (up 1.35 to 933.22, Charts) closed just barely in the black. The Memorial Day holiday Monday will keep all U.S. financial markets closed.

All three markets also closed the week lower. It was the Dow's first down week, slipping 0.9 percent, after three weeks of gains. The Nasdaq, which lost 1.8 percent, and S&P, which declined 1.2 percent, each fell for the first time in six weeks.

"The market has done well in the last few weeks," said Alan Ackerman, market strategist at Fahnestock & Co. "Generally speaking, the market is a bit overbought. We just have to be patient and let the market give back some of its gains."

Investors paid little attention to news that Congress passed a $350 billion tax-cut package that is intended to encourage investing and corporate spending through, among other things, lower taxes on dividends and capital gains.

Instead, they chose to focus on earnings news from retailers Gap and Sports Authority, and tech player Novell.

While the U.S. markets are closed Monday for the holiday, investors will have several economic reports to consider throughout the upcoming week. They'll get a dose of consumer confidence, home sales, durable goods, University of Michigan consumer sentiment, Chicago area manufacturing, and a second reading on first-quarter Gross Domestic Product.

While earnings reports continue to dwindle, investors will hear from Krispy Kreme (KK: Research, Estimates), Qwest Communications (Q: down $0.06 to $4.62, Research, Estimates) and Toll Brothers (TOL: up $0.69 to $27.53, Research, Estimates) next week.

Despite the lackluster trading in the broader market, there was some stock-specific action.

"Even though the averages themselves are doing nothing, there are some special situations going on here," said Donald Selkin, director of research at Joseph Stevens. "There's a lot of action away from the averages."

Sporting goods retailer Sports Authority (TSA: up $0.51 to $9.23, Research, Estimates) jumped 6.3 percent after the company reaffirmed its 2003 earnings guidance following a report that its first quarter earnings fell 70 percent.

Gap (GPS: down $0.70 to $16.50, Research, Estimates) shares slipped 4.1 percent, even after the clothing retailer reported a sharp rise in first quarter profit late Thursday, posting earnings that beat analysts' average expectation by a penny.

In the tech sector, software firm Novell (NOVL: up $0.38 to $3.10, Research, Estimates) rallied 14 percent after it posted a sharply narrower quarterly loss and higher revenue compared with last year, despite weakness in the information technology sector.

And shares of Walt Disney (DIS: up $0.12 to $18.24, Research, Estimates) tipped higher after the Dow component said late Thursday it is exploring the idea of selling its Disney Store unit, which sells licensed merchandise based on Mickey Mouse and other Disney characters.

Homebuilders saw the benefits of low interest rates. The sector rose Friday, after mortgage rates set fresh lows again Thursday. Some of the beneficiaries Friday were KB Home (KBH: up $1.98 to $57.34, Research, Estimates), whose shares rose 3.6 percent, and MDC Holdings (MDC: up $2.34 to $48.22, Research, Estimates), which rose 5.1 percent.

The latest assault on the dollar, which fell to a record low against the euro earlier in the day, stirred little angst among stock market players.

Trading was fairly light, as many investors chose to hold tight ahead of the long weekend. On the New York Stock Exchange, advancers beat out decliners by a two-to-one margin as 1.2 billion shares traded. On the Nasdaq, winners overtook losers three to two as 1.4 billion shares changed hands.

Meanwhile, the 10-year Treasury took a sharp turn lower late in the day, declining 1-3/32 of a point in price, its yield edging up to 3.44 percent.

European stock markets ended the day mostly lower, and Asian markets were mixed overnight.

Light sweet crude oil futures gained 31 cents to $29.16 a barrel in New York. Gold climbed 70 cents to $368.80 an ounce in New York.