Wall Street finished a lackluster session with modest gains Friday as stronger-than-expected economic reports helped investors rebound slightly from their disappointment with the Federal Reserve's latest policy statement.
The market started the third quarter quietly as many traders left for the long holiday weekend. Stocks had dropped sharply Thursday as the Fed gave no indication it would stop its steady, gradual interest rate increases.
The central bank also raised the nation's benchmark rate a quarter percentage point to 3.25 percent on Thursday.
But some analysts felt the sell-off, which slashed nearly 100 points from the Dow Jones industrial average, was overdone, and bargain hunters lifted stocks Friday despite another surge in crude oil prices.
The Dow rose 28.47, or 0.28 percent, to 10,303.44.
Broader stock indicators were narrowly higher. The Standard & Poor's 500-stock index was up 3.11, or 0.26 percent, at 1194.44, and the Nasdaq composite index gained 0.41, or 0.02 percent, to 2057.37.
Bond prices fell after rallying Thursday after the Fed's policy announcement. The yield on the 10-year Treasury note rose to 4.04 percent, from 3.92 percent late Thursday. The dollar rose against most major currencies, while gold prices moved lower.
Stocks were volatile this week, swinging higher as oil prices fell, then dropping on the Fed's announcement and, finally, ending the week nearly unchanged. For the week, the Dow gained 0.05 percent, the S&P rose 0.24 percent and the Nasdaq climbed 0.2 percent.
The Institute for Supply Management's manufacturing index was stronger than expected. The ISM index for June came in at 53.8, far better than the 51.5 reading economists had forecast and up from a reading of 51.4 in May. Any reading above 50 on the ISM index represents an expansion in economic activity.
Investors looked past construction spending, which fell 0.9 percent in May -- the third straight month of declines.
Pfizer fell 48 cents, to $27.10. The drugmaker sad it would stop work on an HIV treatment and an asthma drug after disappointing clinical trials.
Pixar Animation Studios fell $6.99, to $43.06. Sales of "The Incredibles" DVD have been weaker than the company expected.
3M rose 70 cents, to $73. The company it would take a tax-related charge in the second quarter as it reinvests $1.7 billion of foreign earnings back in the United States.
New York Stock Exchange composite index rose 27.81, to 7245.59.
American Stock Exchange index rose 10.33, to 1554.74.
Russell 2000 index of smaller-company stocks rose 3.38, to 643.04.
NYSE: 1.58 billion shares, down from 2.09 billion on Thursday. Advancers outnumbered decliners 7 to 4.
Nasdaq: 1.21 billion shares, down from 1.72 billion. Advancers outnumbered decliners 5 to 4.
Light, sweet crude oil for August delivery: $58.75, up $2.25.
Gold for current delivery: $427.90 a troy ounce, down from $435.90 on Thursday.