Mixed day, down week

NEW YORK (CNNMoney.com) -- Financial shares rallied Friday on relief that the new version of the Wall Street reform bill is less restrictive than had been expected, but the broader market was mixed at the end of a down week on Wall Street.

Dow Jones industrial average (INDU) lost 9 points or 0.1%. The S&P 500 (SPX) gained 3 points or 0.3% and the Nasdaq (COMP) composite gained 6 points or 0.3%.

Stocks seesawed in the morning after economic growth in the first quarter was revised lower. Initially, investors showed little reaction to the news that lawmakers in the House and the Senate finalized negotiations on the most sweeping financial reform since the New Deal. But as the session wore on, the tone improved and the rally in bank shares spread to the broader market.

However, markets turned mixed near the close and trading volume amped up amid the impact of the annual rebalancing of the the Russell indexes. They include the Russell 1000 index of the largest American companies and the Russell 200 index of smaller companies.

Banks, techs, drugmakers and energy shares were among the gainers on the day, but some of the consumer product names stumbled, leaving markets mixed on the session. Blackberry maker Research in Motion (RIMM) lost nearly 11% in very active trading after it reported a rise in fiscal first-quarter revenue and earnings that disappointed investors on the revenue side.

Stocks lost ground this week after a two-week advance, as economic worries resurfaced after a brief reprieve. The market has been firmly in "correction" mode - down at least 10% from the highs - for over a month now.

The recent attempt to erase those losses petered out this week amid worse-than-expected reports on housing, manufacturing and on Friday, GDP.

GDP: Economic growth in the first three months of the year progressed at a slower pace than originally reported, the government said Friday, with consumers spending less than originally thought.

GDP grew at a 2.7% annualized rate in the first quarter versus the previously reported 3%. Economists surveyed by Briefing.com thought growth would hold steady at 3%.

In other economic news, the University of Michigan's final consumer sentiment index for June was revised up to 76 from the previous reading of 75.5. Economists thought it would hold steady, on average. The index stood at 73.6 in May.

Wall Street reform: After two weeks of negotiations following a year of work, lawmakers in Washington have combined two versions of a reform bill that will overhaul the financial system. The final bill won't be passed for a few days.

Proposed in the wake of the financial market meltdown, the bill's highlights include: the establishment of a consumer protection agency inside the Federal Reserve; mortgage help for the jobless; and the establishment of a council to look out for problems at major banks and throughout the financial system.

While most of the stock market was flat to lower, the financial sector rallied on relief that the part of the bill that regulates trading was not as strident as some had feared.

The government would be given the ability to regulate derivatives - complex securities that were used by speculators in a way that contributed to the collapse of the housing market. But the regulations are looser than initially proposed. Also, the government will be able to limit, but not stop, banks from making trades on their own accounts.

Financial shares rallied, with the KBW Bank (BKX) sector index adding 2.9%. Components Bank of America (BAC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Comerica (CMA) and PNC Financial Services Group (PNC, Fortune 500) were among the gainers.

Currency: The euro inched higher versus the dollar but remained well above the four-year low of $1.188 hit last week. The dollar was down 0.3% versus the yen. The direction of the euro and the state of global debt are expected to be in focus at this weekend's G-20 meeting.

World markets: European markets slipped. Britain's FTSE 100 lost 1%, Germany's DAX gave back 0.7% and France's CAC 40 fell 1%.

Asian markets slipped. Japan's Nikkei fell 1.9%, Hong Kong's Hang Seng fell 0.2% and China's Shanghai Composite lost 0.5%.

Commodities: U.S. light crude oil for August delivery rose $2.11 to $78.62 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery gained $10.60 to $1,256.70 an ounce after closing at a record $1,258.30 last Friday.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.11% from 3.12% late Thursday. Treasury prices and yields move in opposite directions.

Market breadth: Market breadth was positive and volume was robust because of the rebalancing. On the New York Stock Exchange, winners beat losers seven to three on volume of 2.56 billion shares. On the Nasdaq, advancers topped decliners two to one on volume of 5.14 billion shares.