Stocks give up early gains

Associated Press

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NEW YORK – Stocks fell Friday, giving up early gains as investors appeared to take a break from the run-up in stocks this week.

AP

Investors' early burst of enthusiasm, which sent the major indexes each up more than 1 percent, came after upbeat profit reports from big names like Microsoft Corp. and reports of a possible buyout of a trouble bond insurer. But rumors of financial troubles among hedge funds appeared to unnerve the market Friday.

The notion that a hedge fund could face trouble rekindled concerns that the recent stumbles in the finanical sector may not be entirely on the mend; reports of fund problems have contributed to the market's declines over the past few months.

The concerns about further trouble in the financial sector dampened the market's enthusiasm over Microsoft's bright forecast and earnings that outpaced expectations. The results for a time appeared to strengthen a notion emerging in recent days that perhaps Wall Street had been too pessimistic in its reading of the economy.

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