The market's earlier gain was the first sign of life in the market after a week-long decline caused by a string of discouraging corporate news reports. But analysts weren't surprised by the pullback, with investors worried about the possibility of terror attacks and the conflict between India and Pakistan.

"It's end-of-the week jitters. There are enough things to worry about in the world that could go wrong," said Arthur Hogan, chief market analyst at Jefferies & Co.

The Dow Jones industrial average closed up a slight 13.56, or 0.1 percent, at 9,925.25, having gained as much as 130.36 earlier, according to preliminary calculations. The advance broke the Dow's four-session, 304-point losing streak.

The broader market was mixed. The Nasdaq composite index fell 16.27, or 1.0 percent, to 1,615.65, having climbed as much as 19.55 earlier. The Standard & Poor's 500 index advanced 2.47, or 0.2 percent, to 1,067.13.

The market was encouraged by positive economic news – healthy business activity in the Chicago area, a jump in U.S. worker productivity, and an uptick in consumer sentiment – but caution crept back into trading as the session wore on.

"The economy is doing well, but the stock market is trying to hammer out the bottom. It's not a new bull market yet. It's not off to the races," said Scott Bleier, president of Hybridinvestors.com.

The Purchasing Management Association of Chicago said its index of business activity rose to 60.8 in May, up from 54.7 in April. Wall Street was heartened by the jump because it considers the index to be a reliable indicator of the health of businesses across the country.

The Labor Department also had good news, reporting that productivity grew at an annual rate of 8.4 percent in the first quarter, which met analysts' expectations and was the best showing in 19 years.

The third piece of economic news came from the University of Michigan's Index of Consumer Sentiment, which rose to 96.9 in May from 93 in April. And, the Index of Consumer Expectations reversed a decline seen in April, rising to 92.7 in May.

Among Friday's gainers, Home Depot rose $1.54 to $41.69, Procter & Gamble climbed 80 cents to $89.55, and UPS advanced $1.38 to $60.38 after Bear Stearns raised its rating on the stock to "buy" from "neutral."

But technology pulled back, with Microsoft falling $1.63 to $51.01 and Oracle declining 52 cents to $7.90.

Analysts have been skeptical about the sustainability of any gains, especially as companies start issuing earnings warnings during the next month and also make predictions for the second half of 2002.

"There is a lot of news to come. ... The market is going to be very volatile to economic data for a while," said Barry Berman, head trader for Robert Baird & Co. in Milwaukee.

Today's losers included companies that issued weaker-than-expect outlooks or earnings. Retailer Lowe's stumbled 73 cents to $47.16 after projecting 2002 earnings below analysts' expectations.

Handheld computer maker Palm fell 62 cents to $1.59 after announcing that revenues for the fourth quarter, ending yesterday, will miss expectations and keep it from achieving profitability.