Stocks gain slightly

U.S. stocks finished mostly higher Friday, but they surrendered most of an early gain as worries about rising tariffs once again dampened investors' enthusiasm as the second quarter came to an end.

The Federal Reserve allowed most of the largest financial institutions in the U.S. to pay bigger dividends to shareholders and buy back tens of billions of dollars in stock. Wells Fargo made its biggest gain since shortly after the 2016 Presidential election. Nike had its biggest surge in almost four years after it said sales in North America improved in its latest quarter.

The Commerce Department said spending by consumers rose a disappointing 0.2 percent in May. But wages continued to improve, and Shawn Cruz, manager of trader strategy for TD Ameritrade, said that suggests spending will rise.

“Investors wanted to see what the potential is for consumer spending in the future,” Cruz said. “Wage growth came in solid enough that there wasn't a major concern.”

The S&P 500 index edged up 2.06 points, or 0.1 percent, to 2,718.37. The Dow Jones Industrial Average gained 55.36 points, or 0.2 percent, to 24,271.41. The Nasdaq composite rose 6.62 points, or 0.1 percent, to 7,510.30. The Russell 2000 index of smallercompany stocks lost 1.95 points, or 0.1 percent, to 1,643.07.

Just before midday the Dow rose as much as 293 points, but those gains eroded as investors again focused on the trade concerns that have rocked the market since late February. Canada announced $12.6 billion in retaliatory tariffs on U.S. goods in response to the U.S. tariffs on steel and aluminum imports. General Motors warned that if the Trump administration places import taxes on cars and car parts, it will likely face retaliation and might have to eliminate jobs in the U.S.

The Federal Reserve allowed 32 of the 35 largest banks in the U.S. to raise their quarterly dividends and buy back more stock. The central bank determined that those institutions are in good enough financial shape to weather a major downturn in the economy.

The dollar rose to 110.85 yen from 110.64 yen. The euro rose to $1.1672 from $1.1555.