In economic news, personal income rose more-than-expected 1.4% for May, while personal consumption expenditures rose 0.3%.

The University of Michigan U.S. consumer sentiment index climbed to 70.8 in the final June reading, stronger than the 69.0 seen in the preliminary report and above the 69.0 expected by the markets. The index was 68.7 in May and 56.4 a year ago.

Treasuries were higher in rebound from earlier lows, capping off a week of rather successful auctions as this market faces more sales to pay for various bailout plans, reports S&P MarketScope. The dollar index was lower after China called for a super sovereign reserve currency to replace the dollar. Gold futures were higher and oil futures fell.

On Friday, the 30-stock Dow Jones industrial average fell 34.01 points, or 0.40%, to 8,438.39. The broad Standard & Poor's 500-stock index was down 1.36 points, or 0.15%, to 918.90. The tech-heavy Nasdaq composite index edged up 8.68 points, or 0.47%, to 1,838.22.

Home builders were weaker on earnings news from KB Home (KBH). Oil producers fell as energy futures eased on news of a Nigerian ceasefire with militants.

Among stocks in the news, Palm (PALM) shares jumped after the company reported $0.40 fourth quarter adjusted loss, vs. $0.22 loss a year ago, on 62% revenue decline. Results were seen as better than expected; Street was looking for $0.62 loss. It says it shipped a total of 351,000 smartphone units during the quarter, representing a 6% increase from third quarter fiscal year 2009. Macquarie raises target price to $20; reiterates outperform.

KB Home (KBH) posts $1.03 second quarter loss, vs. $3.30 loss a year ago, on 40% revenue decline. It notes current quarter includes noncash charges for inventory, joint venture impairments and abandonment of land option contracts totaling $49.5 million, a 72% reduction from similar charges in second quarter 2008. It says company-wide net orders for new homes in second quarter were down 31% from year-ago, but up 59% sequentially.

Potash (POT) lowered its second quarter EPS forecast to $0.70 from previous guidance of $1.10-$1.50 EPS. It cited substantially lower-than-forecast potash sales volume due to deferral of purchases by customers around the world and lower realized prices for phosphate fertilizers. RBC Capital cut estimates.

UBS AG (UBS) says based upon preliminary results for April, May and estimated results for June, it expects to incur a net loss for the second quarter. Net new money has been negative in the three wealth and asset management divisions in the quarter to date. Separately, the company says it is offering 293.3 million newly issued shares from authorized capital to a small number of institutional investors at a price of CHF 13.00 per share.

Immucor (BLUD) says the FDA issued a notice of intent to revoke the company's biologics license with respect to its Reagent Red Blood Cells and Anti-E [Monoclonal] Blood Grouping Reagent product. Notes the FDA has not ordered the recall of any of the company's products.

Accenture (ACN) posts $0.68, vs. $0.74, third quarter EPS on 4% [in local currency] revenue decline. Street was looking for EPS of $0.64. It sees fourth quarter revenue of $5.0-$5.2 billion; narrows range for fiscal year 2009 revenue growth to flat to slightly positive in local currency, with operating margin at the lower end of its previously guided range of 13.4%-13.7%. It raises fiscal year 2009 EPS outlook to $2.67-$2.70 from $2.60-$2.67. S&P Equity Research downgrades to buy from strong buy.

Boeing (BA) shares were trading lower after Australia's Qantas Airways announces that its has cancelled orders for 15 of BA's B787-9 Dreamliners that had been due for delivery in 2014-15 and deferred for four years an order for another 15 of the same aircraft.

Micron Technology (MU) posts $0.36 third quarter loss, vs. $0.30 loss, on 27% sales decline.

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