NEW YORK (CNNMoney.com) -- Stocks attempted a late day turnaround Friday as investors balanced upbeat earnings news from Google and 3M but heard a dire warning on the economy from Caterpillar.

The 30-share Dow (down 6.48 to 12,005.25, Charts) edged lower with about a half-hour left in the session after initially opening higher.

Thursday, the Dow closed above 12,000 for the first time ever, hitting a record high for the ninth time in the last 12 sessions.

The broader S&P 500 (up 0.88 to 1,367.84, Charts) and the tech-laden Nasdaq (down 0.26 to 2,340.68, Charts) both edged higher.

Caterpillar (down $9.26 to $59.76, Charts) shares tumbled 12 percent after profits at the heavy equipment maker rose but fell short of estimates.

The company, often viewed as a barometer for the broader economy, also warned of slower economic growth ahead.

"When a company starts talking like that it really brings the issue front and center," said Joe Battipaglia, chief investment officer at the N.J.-based brokerage Ryan Beck & Co. "The overall health (of the economy) is good, but it's deteriorating."

Other analysts also fretted over the economy.

"The entire global economy is slowing, that's a problem," said John Lekas, president of Leader Capital Management. "That's the pause in the market you are seeing."

Earlier in the week a report showing tame inflation combined with fairly strong corporate earnings and eased investors fears, which in turn helped the Dow reach record highs most days.

Caterpillar was largely responsible for the loss of momentum Friday.

The big drop in Caterpillar's share price accounted for all of the Dow's loss and then some - the benchmark index would be trading 30 points higher without the drag.

Not even Internet gorilla Google could stem the slide.

Google (up $30.95 to $457.01, Charts) soundly beat analyst estimates late Thursday as profits nearly doubled and the stock stock surged 7 percent early Friday. Several brokerages raised their price targets above $500 Friday morning.

Other earnings reports were mostly positive.

Conglomerate 3M (up $2.71 to $79.11, Charts) posted improved results that beat forecasts and its shares rose over 3 percent.

Profits fell at Merck & Co. (up $0.97 to $45.46, Charts) but the fall was attributed to the company setting aside an additional $598 million to fight lawsuits over its withdrawn painkiller Vioxx and shares rose over 2 percent.

Oil turned lower after OPEC announced a 1.2 million barrel a day cut in production that analysts said it will have a hard time enforcing.

U.S. light crude fell $1.68 to $56.82 a barrel on the U.S. Mercantile Exchange.

Stocks in Asia closed mostly higher, while most gauges in Europe also rose.

Treasury prices were little changed, leaving the the yield on the 10-year note near 4.78 percent.

The dollar gained against the euro and the yen.

Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of 1.3 billion shares. On the Nasdaq market decliners topped advancers three to two as 1.6 billion shares changed hands.

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