The Dow Jones industrial average lost 16.26 to close at 5,535.48, a gain of 3.39 for the week.

Advancers led decliners by about 3 to 2 on the New York Stock Exchange, with 1,396 up, 917 down and 809 unchanged. Big Board volume totaled 419.98 million shares vs. 410.91 million in the previous session.

Broad-market measures were decidedly more positive, with the technology-heavy Nasdaq composite setting its second straight record and the American Stock Exchange's market value index notching its fourth straight mark.

The NYSE composite gained 1.01 to close at 346.10, up 3.99 for the week. The S&P 500 list rose 1.45 to 645.06, up 8.35 on the week, while the Nasdaq composite index rose 1.90 to 1,138.20, a gain of 37.26.

At the American Stock Exchange, the market value index rose 2.80 to 585.88, up 13.62 for the week.

Microsoft helped the technology sector maintain its market leadership after releasing an earnings report that suggested the computer industry was healthier than widely portrayed during the first three months of the year

Computer stocks rose after the news. Compaq and Digital Equipment rose on the NYSE, while Dell gained ground on the Nasdaq.

But IBM, which slid more than $10 points on Wednesday after issuing a cautious outlook in an otherwise strong earnings report, struggled again.

Bond prices rose, with the yield on the 30-year Treasury bill dipping below 6.8 percent. Stocks often rise as interest rates fall, lowering corporate borrowing costs and boosting business activity.