Wall Street report: Friday close

LATE selling attributed to worries over rising tensions between India and Pakistan helped erase a tech-led rally. The Dow Jones Industrial Average, up 100 points early on stronger-than-expected economic data, closed ahead just 13.56 points at 9,925.25. The Nasdaq fell 13.56 points or 1% to 1615.65.

The Dow retreated 1.8% on the holiday-shortened week to drop into the red for the year, while the Nasdaq's 2.7% loss widened its deficit for 2002 to 17%.

Analysts said fears that war could break out between India and Pakistan, both nuclear powers, had prompted investors to take money off the table. 'Do you want to hold on to shares over the weekend with this international tension?' said Larry Wachtel, senior vice president of Prudential Securities.

Earlier, consumer confidence data from the University of Michigan beat forecasts, with its measure of consumer confidence rising to 96.9 in May from 93 in April. That

countered worries stoked by a Conference Board survey earlier in the week indicating might be less willing to spend. Figures on productivity, factory orders and economic activity in the Chicago area also came in on the plus side.

A surge of buying in semiconductors, on the defensive all week, helped boost the tech sector early on. But that support dissipated as the day wore on. Intel gave up most of a strong gain to close up just 20 cents or 0.7% at $27.62. Texas Instruments slipped back into the red on a decline of 13 cents or 0.5% to $28.67.

Palm, which makes handheld computers, plunged 62 cents or 28% to $1.59 after it issued a disappointing update. IBM fell $1.80 or 2.2% to $80.45. Microsoft reversed an early gain to close off $1.63 or 3.1% to $51.01 and Cisco Systems lost 23 cents or 1.4% to $15.78.

Bristol-Myers Squibb spurted $1.27 or 4.3% to $31.12 on reports it was in merger talks with GlaxoSmithKline. GSK's US shares came off $1.31 or 3.1% to $41.35.

Retailers regained some ground lost in the past few days. Do-it-yourself giant Home Depot firmed $1.54 or 3.8% to $41.69.

Among Dow components, General Motors dipped 20 cents or 0.3% to $62.44, JP Morgan Chase was steady at $35.95 and Coca-Cola, possibly benefiting from a weaker dollar, added $1.17 or 2.2% to $55.56.