Charles Schwab

US stocks inch higher as banks rise and drugmakers fall

U.S. stocks gave up large gains and finished barely higher Friday. Banks and technology companies traded higher, while stocks that pay large dividends fell thanks to a jump in bond yields.

Stocks were on track for large gains early in the day as reports showed consumers in both the U.S. and China appeared to be spending more. Banks rose after JPMorgan Chase and Citigroup disclosed solid quarterly results. But the gains faded as the day wore on. Drug company stocks continued to fall and energy companies slipped.

"The retail sales numbers on the surface looked pretty good but when you dig into them they were not that great," said Mike Baele, managing director at U.S....