Stocks managed a small gain today as investor optimism about interest rates overcame profit concerns about Intel and Gillette.

The Dow Jones industrial average closed Friday at 10,855.56, a gain of 13.93 points. For the week the benchmark average rose 365.05 points, having gained points each day and more than wiping out the 309-point loss suffered the previous week.

Broader stock indicators were higher as well, with the Standard & Poor's 500-stock index up 2.94 to 1,342.84 and the Nasdaq composite index up 19.29 to 2,563.44.

For the year, the Dow is up 18.2 percent, the S&P 500 is up 9.2 percent and the Nasdaq has gained 16.9 percent.

Intel, the world's largest maker of chips for personal computers, fell 3-1/16 to 54-15/16 after Morgan Stanley Dean Witter cuts its rating on the stock because of delays in launching a new chip for laptop computers. But other computer and semiconductor shares held their ground.

"This seems to be a company-specific not industry-specific issue," said Arthur Hogan, chief market analyst at Jeffries & Co.

Gillette fell after the razor and blade maker warned that second-quarter profits will miss analysts' forecasts for the rest of this year because of weak sales in Brazil, Russia and Japan. Gillette tumbled 5 1/8 to 42-3/16.

The dampened earnings outlook for the two big companies came a day after Federal Reserve Chairman Alan Greenspan indicated that only a modest increase in short-term interest rates may be needed to keep inflation in check. His comments had a generally soothing effect on the markets.

The Dow was led higher Friday by construction equipment maker Caterpillar, up 2 5/8 to 61 1/2 and computer maker Hewlett Packard, up 2 5/8 at 91-15/16.

Computer software stocks got a boost from Adobe, which rose 8-11/16 to 82-9/16, after the maker of graphics software topped earnings forecasts. Microsoft rose 2 1/8 to 85.

Advancing issues outnumbered declining ones by a narrow margin on the New York Stock Exchange, where 914.5 million shares were traded, up from 700.3 million Thursday.

The NYSE composite index rose 0.48, to 636.55; the American Stock Exchange composite index fell 0.12, to 768.57; and the Russell 2000 index of smaller companies rose 1.67, to 445.05.