The Dow Jones industrial average was down 19.26 points, or 0.17 per cent, at 10,988.91, after profit-taking in the final 15 minutes of trading wiped out earlier gains.

The Nasdaq composite index was up 27.32 points, or 0.80 per cent, to 3,447.82, marking its 16th record close in 20 sessions. The Nasdaq on Wednesday shot to an all-time high of 3,420.50 - its first time ever over 3,400. The US financial markets were closed Thursday for Thanksgiving Day.

And the Standard & Poor's 500 stock index slipped 0.46 of a point, or 0.03 per cent, to 1,416.62, at the end of Friday's abbreviated session.

Before the open, the US commerce department said personal spending, which accounts for two-thirds of national economic activity, rose a stronger-than-expected0.6 per cent in October while economists polled had forecast a 0.3 per cent increase.

Markets are sensitive to any economic data indicating the US economy may be revving too high as the numbers could suggest the Fed might opt for another interest rate hike if inflationary pressures emerge. Spending had climbed by 0.4 per cent in the previous period.

The 30-year US treasury bond fell 13/32, pushing its yield up to 6.24 per cent on Friday from 6.20 per cent at Wednesday's close. Bond trading will close at 1900 GMT.

"Everyone knows that the stronger the economy, the more the threat of inflation and the higher the chance the Fed will act," said George Cohen, principal, Cohen, Klingenstein and Marks in New York. "But inflation has remained benign. Maybe no one is working today. I don't know if (the Commerce Department) numbers were such a surprise."

The commerce department also said October personal income rose by the strongest rate in five-and-a-half years, boosted by government farm subsidies, Unionsigning bonuses and the rebound from Hurricane Floyd.Personal income jumped by a greater-than-expected 1.3 per cent for the month while economists polled had forecast a gain of only 0.6 per cent.

In the broader market, advancing issues barely edged out declines on sleepy volume of about 313 million shares on the New York Stock Exchange. There were 43 stocks at new highs and 140 at new lows.

The Street.com's Internet index was outperforming the broader market with the gauge up 1.82 per cent as investors continued to plough money into technology shares.

Among the big movers, Ariel Corp shares extended gains two days after the technology company said it had won a worldwide certification on its remote Internet network connection product. Its stock was up 26-1/4 at 37.

Amazon.com Inc, one of the biggest names in Internet retailing, jumped 5-7/8 to 93-1/8 on the day after Thanksgiving, which is known as "Black Friday," marking the unofficial kick-off of the holiday shopping season.

Analysts said theyexpect more and more shoppers this year to eschew traditional brick and mortar stores as they jump on the Web to buy gifts in what analysts are predicting could be a big "Internet Christmas."

Phone giant AT&T Corp, which rose 3-13/16 to 57 after a news report said it was weighing an initial public offering of its wireless business, ended up 4-1/4 at 57-7/16.