Stocks finish mixed after wild morning

NEW YORK (CNNMoney.com) -- Stocks finished mixed Friday, stabilizing after a topsy-turvy morning following positive economic news, and then trade news with China that scared investors.

The Dow Jones industrial average (up 2.64 to 12,351.39, Charts) was little changed, while Nasdaq composite (Charts) rose about 0.2 percent and the S&P 500 (down 1.50 to 1,421.03, Charts) index lost 0.2 percent, according to early tallies.

Treasurys, the dollar and oil prices all fell modestly.

Here's what moved the market's Friday:

Stocks rose in the early going following a series of strong readings on personal income and spending, manufacturing and construction.

But then news that the U.S. Commerce Department is reversing a decades-old policy and will begin to impose tariffs on some goods from China sent the Dow tumbling more than 100 points, as investors wondered whether it would eventually spark a trade war between the two countries.

However, volatile trading on a Friday was not exactly surprising, said Art Hogan, chief market analyst at Jefferies & Co.

"We've been seeing this pattern lately where we have a Friday fade after a long week," Hogan said.

He said that while the session certainly had a number of possible catalysts - including the events in Iran, the trade decision about China and news that India raised interest rates - the calendar was playing as much of a role in the market action as anything else.

Stocks rose Thursday at the end of a choppy session in which a strong fourth-quarter growth report vied with a spike in oil prices.

Both consumer spending and personal income rose faster than expected in February, according to an early morning report that also showed a bigger-than-expected jump in a key measure of inflation. (Full story).

The Chicago purchasing manager's index, a regional manufacturing report, also showed a much larger-than-expected jump in March.

Construction spending rose 0.3 percent in February, versus expectations for a decline of 0.6 percent after the previous month's decline of 0.5 percent.

The revised reading on consumer sentiment from the University of Michigan showed a dip to 88.4 from 88.8 previously. Economists thought it would hold steady.

The reports served to reassure investors that the economy is holding up well, following several weeks of discouraging readings.

Among stock movers, Dendreon (up $7.71 to $12.93, Charts) jumped 170 percent in active Nasdaq trade after a Food and Drug Administration panel said late Thursday that its treatment for advanced prostate cancer is reasonably safe and effective.

PMC-Sierra (up $0.72 to $7.02, Charts) shares rallied after the chipmaker said late Thursday that it was closing two research and development centers in Canada and cutting jobs as part of a restructuring effort. The company also said that first-quarter revenue will be in the middle to high end of its previous forecast.

Dell (down $0.19 to $23.20, Charts) declined after it said late Thursday that an internal audit of its accounting showed errors in its financial controls, which could result in restatements of past quarters. (Full story).

Oil services stocks declined, including Exxon Mobil (down $0.60 to $75.64, Charts), BP (down $0.96 to $64.79, Charts) and Marathon Oil (down $2.95 to $98.91, Charts).

Market breadth was positive. On the New York Stock Exchange, winners topped losers 8 to 7 on volume of 1.06 billion shares. On the Nasdaq, advancers beat decliners by a similar margin on volume of 1.55 billion shares.

U.S. light crude oil for May delivery fell 16 cents to $65.87 a barrel in New York Mercantile Exchange trading after having risen in the morning. Prices have been on the rise recently amid worries about the conflict with Iran, the world's No. 4 exporter.

COMEX gold for April delivery rose $1.40 to $669 an ounce.

Treasury prices fell, raising the yield on the 10-year note to about 4.65 percent from 4.64 percent late Thursday. Bond prices and yields move in opposite directions.

In currency trading, the dollar slumped versus the euro and the yen.

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