She said her firm was sticking with some of the tech shares that have been beaten up on recession jitters in recent days, including Cisco Systems and Hewlett-Packard. Cisco fell 63 cents Friday to a seven-month low of $26.12; HP tumbled $2.78 to $46.87, its lowest since August.
James Paulsen, investment strategist at Wells Capital Management in Minneapolis, said he believed the economy was stronger than recent data might suggest and that investors weren't noticing that the credit crunch was easing, as signaled by falling rates on short-term loans between banks.
That could mean stocks are again setting up for another rebound, he said.
"I think there's more bad news behind us than in front of us," Paulsen said.
Among the day's market highlights:
* Falling stocks outnumbered rising issues by more than 3 to 1 on the New York Stock Exchange.
* The Standard & Poor's 500 index dropped 35.53 points, or 2.5%, to 1,411.63, just above its November low of 1,407.22. The index is down 9.8% from its all-time high reached Oct. 9.
The Nasdaq composite Friday was down 12.4% from its 2007 high reached Oct. 31.
* For the week the Dow lost 4.2%, the S&P 500 fell 4.5% and the Nasdaq index gave up 6.3%.
* Intel helped pull the tech sector lower after JPMorgan downgraded the stock to "neutral" from "overweight," citing fears that computer makers slowed chip orders late in the fourth quarter. Intel lost $2 to $22.67, its sixth straight drop.
* Many financial issues fell to fresh multiyear lows, including Merrill Lynch, down $1.70 to $50.29, and Countrywide Financial, down 35 cents to $8.42.
* Stocks were broadly lower overseas. Japan's Nikkei-225 index dropped 4% to 14,691, its lowest close in 1 1/2 years.
* Crude oil futures, which briefly traded at $100 a barrel Wednesday and Thursday, eased $1.27 to $97.91.
Jobs and recessionNegligible payroll growth sends ominous signal. A1