NEW YORK - WALL Street shares ended mixed on Friday as investors mostly locked in profits from a strong rally the previous day and turned cautious ahead of the weekend.

The Dow Jones Industrial Average shed 35.68 points (0.42 per cent) to 8,436.72 at the market close, a day after posting its first triple-digit gain since June 1 following an upward revision in US economic output and mostly positive company earnings results.

The tech-dominant Nasdaq was up 8.68 points (0.47 per cent) to 1,838.22 while the broad-market Standard & Poor's 500 shed 1.57 points (0.17 per cent) to a provisional close of 918.69.

The blue-chip Dow and the S&P 500 indices posted their second straight weekly drop as investors turned cautious about the prospects of the economy recovering.

Most stocks fell from the opening bell on the last trading day of the week.

Traders said investors took profits and digested mixed government data released Friday on personal income and spending.

Traders were taking 'a breather to analyze yesterday's rally and as a larger-than-expected gain in personal income and in-line inflation data helped the markets overcome some early losses,' analysts at Charles Schwab said in a note to clients.

US consumer spending rose modestly in May despite a surge in personal incomes boosted by massive government spending to kick-start the economy out of recession, official data showed.

The Commerce Department reported consumer spending rose for the first time in three months, by 0.3 per cent in May, in line with the expectations of private economists.

But the savings rate shot up to a 15-year high as incomes spiked, suggesting consumers were being tight-fisted with their money in the face of mounting unemployment and home foreclosures.

The weak increase in personal spending - which accounts for two-thirds of US economic activity - followed a revised flat reading for April, a 0.3 per cent decline in March and a 0.4 per cent increase in February.

Personal incomes jumped 1.4 per cent in May, the strongest gain in a year. -- AFP