NEW YORK — Bank stocks surged Friday, boosted by relief over a deal on new financial-regulation overhaul, but the gains failed to wipe out more than a fraction of the broader market’s heavy losses for the week. A flurry of conflicting economic data left the benchmark indexes mixed.
The Dow Jones industrial average closed down 8.99 points, or 0.1 percent, to 10,143.81. The measure fell 2.94 percent this week.
The Dow’s consumer components led its decline, as investors grew worried about how those sectors could be affected by a slump in consumer spending. The government cited weaker consumer spending in a downward revision to the government’s estimate of first-quarter economic growth.
Coca-Cola dropped 3 percent, and Wal-Mart Stores slid 2.5 percent.
But financial components strengthened after U.S. House and Senate lawmakers reached agreement on a landmark package of financial regulations in the early morning hours on Friday.
American Express gained 3.9 percent, JPMorgan climbed 3.7 percent and Bank of America rose 2.7 percent.
Investors said the bill’s passage through Congress eventually watered down some of the most severe provisions.
While the legislation will impose new capital requirements on banks and for the first time extend comprehensive regulation to the over-the- counter derivatives market, banks will be required to spin off only their riskiest swap-trading operations.
“That’s a sigh of relief for the financial services,” said Tim Speiss, head of personal wealth advisors at Eisner LLP. Still, he said, the bill’s total effect should not be understated. “This is the biggest overhaul of financial regulation since the 1930s. It’s no small piece of regulation,” he said.
The Nasdaq composite climbed 0.3 percent to 2,223.48, but still closed down 3.74 percent for the week. The Standard & Poor’s 500-stock index climbed 0.3 percent to 1,076.76. For the week, the S&P 500 fell 3.65 percent.
