NEW YORK (CNN/Money) - Stocks closed lower Friday, despite an early boost from positive news out of Intel, as some investors chose to cash in on the early gains. But the major indexes still managed to end the week higher.

The Nasdaq composite (down 12.23 to 1765.32, Charts) slipped 0.7 percent Friday, but ended the week up a solid 3.7 percent, helped by strength in technology issues. The Dow Jones industrial average (down 74.81 to 9348.87, Charts) fell 0.8 percent, but managed to edge up 0.3 percent for the week. It was the Dow's seventh week of gains out of eight.

Meanwhile, the Standard & Poor's 500 index (down 10.21 to 993.06, Charts) claimed the biggest fall of the three on Friday, dipping about 1 percent. It inched up 0.2 percent on the week.

Before the market opened, Intel upwardly revised its revenue forecast, which caused a rally in the first hour of trading. But as stocks entered the afternoon, the session fell into a typical slow August Friday mode, as many took off early for the weekend or vacations.

"There are sleepy volumes and low participation. There are no players around," said Art Hogan, chief market analyst at Jefferies. "Next week, unfortunately, is going to be the same."

Though it could turn out to be another slow week in August, investors will have some economic reports to consider next week.

Economists expect that existing home sales rose in July from the previous month, while new home sales slowed, according to a consensus of economists surveyed by Briefing.com. Readings on July durable goods orders and August consumer confidence are forecast to come in better than their readings in the previous month, while a second take on Gross Domestic Product for the second quarter is also expected to rise.

Meanwhile a consensus of economists forecast the Chicago-area Purchasing Managers' Index for August to slip from the previous month, according to Briefing.com.

Before the open, the world's largest chipmaker said improved demand in its core computer chip business across various regions and channels would result in third-quarter revenue of between $7.3 billion and $7.8 billion, up from its previous guidance of $6.9 billion to $7.5 billion.

Intel also said it expects better gross profit margins, although it added that demand for its communications products remains soft. Intel (INTC: up $1.00 to $27.39, Research, Estimates)'s stock jumped 3.8 percent.

Shares of other chip makers rallied too, with Advanced Micro Devices (AMD: up $0.46 to $9.91, Research, Estimates) soaring 5.9 percent and National Semiconductor (NSM: up $0.39 to $28.13, Research, Estimates) adding 1.4 percent, while chip equipment maker Applied Materials (AMAT: up $0.57 to $21.30, Research, Estimates) bounced 2.8 percent. The Philadelphia Semiconductor Index advanced 0.9 percent.

Other market movers included Freddie Mac (FRE: down $1.30 to $49.47, Research, Estimates), which lost 2.6 percent after reports that federal regulators are pushing the mortgage company to remove its CEO due to his involvement in the company's accounting problems.

Drugmaker Schering-Plough (SGP: down $1.52 to $14.96, Research, Estimates) dropped 9.2 percent after saying late Thursday it would cut its quarterly dividend by 68 percent and cut at least 1,000 jobs. But Millennium Pharmaceuticals (MLNM: up $0.55 to $13.33, Research, Estimates) jumped 4.3 percent after Morgan Stanley upgraded the stock to "equal weight" from "underweight."

Dow component Boeing (BA: up $0.74 to $35.68, Research, Estimates) rose 2.1 percent. The aircraft maker said it plans to lay off 1,440 employees to help cut costs.

Retailers remained in focus. Nordstrom (JWN: up $1.07 to $25.07, Research, Estimates) bumped 4.5 percent higher after posting second-quarter earnings that beat Wall Street estimates after the closing bell Thursday.

Trading volume was modest for a Friday in late August and market breadth was negative, with about two stocks falling for every one that rose on both the New York Stock Exchange and the Nasdaq. About 1.7 million shares traded on the Nasdaq and 1.3 billion shares traded on the NYSE.

Treasury prices moved higher, with the yield on the 10-year Treasury note slipping to 4.45 percent from 4.47 percent from late Thursday. The dollar continued to climb against the euro and was marginally lower against the yen.

European markets ended mixed, as did stocks in Asia. (Click here for more on world markets.)

NYMEX light sweet crude oil prices fell 4 cents to $31.84 a barrel. COMEX gold rose $2.50 to $364.30 an ounce.