Analysts said trading was choppy as investors made quick bets about the war's prospects. But most chose to sit on the sidelines, wary of making major purchases before the weekend.

"A conflicting news day is leading to a conflicted market," said Stephen Massocca, president of Pacific Growth Equities. "We have continuing good news coming out of Iraq. But on the other side, we have disappointing employment numbers coupled with other negative economic news."

The Dow Jones industrial average closed up 36.77, or 0.5 percent, at 8,277.15, having declined 44 points yesterday.

The broader market finished mixed. The Nasdaq composite index dropped 13.09, or 0.9 percent, to 1,383.49. The Standard & Poor's 500 index rose 2.40, or 0.3 percent, to 878.85.

For the week, the Dow rose 1.6 percent, the Nasdaq gained 1 percent, and the S&P 500 advanced 1.8 percent.

Today, U.S.-led forces edged closer to Baghdad after seizing control of Saddam International Airport, nine miles away.

Stocks, however, trimmed early gains after Iraqi television showed Saddam calling on his people to fight back, dampening rumors the leader might be wounded or dead. His remarks included a reference to the downing of an Apache helicopter that occurred after the March 19 strike aimed at killing him.

An Iraqi official also promised an "unconventional" retaliation, referring to commando and suicide attacks.

"People are a little more fearful about what might hit over the weekend," said Ned Riley, chief investment strategist at State Street Global Advisors. "There is concern that when we start to ferret out the last of the Republican Guard, we may be confronted with something that is not very tasteful."

Analysts say investors have been largely optimistic about a short and successful war, leading them to drive stocks mostly higher in recent weeks. But they add that trading will likely be uneven in the coming days as investors respond to the latest war headlines.

Meanwhile, a Labor Department report showed that U.S. companies slashed 108,000 jobs in March, more than analysts' estimates of about 40,000 cuts.

The overall civilian unemployment rate held steady at 5.8 percent.

PeopleSoft dropped $1.48, or 9 percent, to $15.02 after the software company lowered its quarterly outlook below Wall Street's and its own previous estimates, citing the weak economy.

Affymetrix fell $9.67, or 34.5 percent, to $18.33 after the maker of gene chips lowered its first-quarter earnings estimates, blaming a slowdown in capital spending.

Altria declined $1.40 to $28.30 after the Illinois Legislature rejected a plan to cap the amount its Philip Morris tobacco unit has to deposit to appeal legal verdicts.

Gainers included Research in Motion, which rose 42 cents to $14.88, after the maker of BlackBerry pagers reported a quarterly loss that was narrower than analysts' expectations; the company also raised its first-quarter revenue forecast.

Advancing issues outnumbered decliners 5 to 4 on the New York Stock Exchange. Volume was light.

The Russell 2000 index, which tracks smaller company stocks, fell 1.94, or 0.5 percent, to 373.28.

Overseas, Japan's Nikkei stock average finished 0.7 percent higher today.