Stocks were barely mixed in light trading Friday after a report showed consumer sentiment drooping and Dell Inc. posted sharply lower second-quarter profits.

The University of Michigan's preliminary reading of consumer sentiment in August was 78.7, down from 84.7 a month earlier. Wall Street had been looking for the index to tumble to 83.8, and the greater-than-expected drop was viewed as a signal the economy may weaken too much.

Technology stocks moved lower after Dell reported second-quarter profit fell 51 percent as sales growth slowed to the lowest rate in three years. The world's largest computer maker _ already reeling from a massive laptop battery recall earlier in the week _ also disclosed the Securities and Exchange Commission has been investigating its accounting for the past year.

More negative earnings news from Gap. Inc. and announced production cuts by Ford Motor Co. also prevented the markets from extending a four-day winning streak. Recent signs that inflation is slowing enough for the Federal Reserve to hold interest rates have helped rally investors in recent sessions.

"The technology sector is leading the market to the downside, and we're also seeing the consumer discretionary sector down, reflecting the confidence number," said Jeff Kleintop, chief investment strategist for PNC Financial Services Group in Philadelphia. "This might be a sign consumer strength is going to be fading, and the confidence report has contributed to that."

In midafternoon trading, the Dow Jones industrial average rose 6.32, or 0.06 percent, to 11,341.28.

Broader stock indicators were mixed. The Standard & Poor's 500 index rose 0.92, or 0.07 percent, to 1,298.40, and the Nasdaq composite index fell 6.23, or 0.29 percent, to 2,151.38.

Bonds pushed toward gains for a fourth straight session, with the yield on the benchmark 10-year Treasury note falling to 4.84 percent from 4.86 percent late Thursday. The dollar was mixed against other major currencies, while gold prices fell.

Oil prices moved higher in trading after tumbling a day earlier on cooling of Middle East tensions. A barrel of light, sweet crude for September delivery was quoted at $71, up 94 cents, on the New York Mercantile Exchange. On Thursday, oil fell as low as $69.60 a barrel _ a level not seen since June 21.

Dell's results cast a shadow over the Nasdaq, with its shares falling $1.14 to $21.66, while rival Hewlett-Packard, which reported strong earnings earlier this week, added 37 cents to $35.52. Chip suppliers Intel Corp. fell 10 cents to $18.46 and Advanced Micro Devices Inc. fell 57 cents to $23.63.

Gap fell 67 cents to $16.63 after reporting a 53 percent drop in second-quarter profit as aggressive markdowns put the squeeze on margins.

Ford, the nation's second-largest auto maker, said it would cut fourth-quarter production by 21 percent to accelerate its turnaround plan. Ford fell 20 cents to $7.97.

Altria Group Inc. and Reynolds American Inc. shares rose after a judge's ruling held that tobacco companies violated federal racketeering laws, though the judge said she was unable to order financial remedies. Altria rose $2.64 to $83.39, and Reynolds rose 93 cents to $65.

Declining issues barely outnumbered advancers on the New York Stock Exchange.

The Russell 2000 index of smaller companies fell 3.86, or 0.54 percent, to 706.92.

Overseas, Japan's Nikkei stock average closed up 0.53 percent. Britain's FTSE 100 was up 0.5 percent, Germany's DAX index fell 0.28 percent, and France's CAC-40 dropped 0.18 percent.

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On the Net:

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Nasdaq Stock Market: http://www.nasdaq.com

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A service of the Associated Press(AP)

By JOE BEL BRUNO

Copyright © 2006 Bismarck Tribune, a division of Lee Enterprises.