MARKETWATCH

Stocks fell while bonds rose in U.S. markets on Friday as investors awaited the outcome of trade talks with Japan. More indications of a strengthening economy continued to pour in. The Commerce Department reported that Americans' personal income rose 0.4 percent, the seventh straight increase, while spending climbed 0.9 percent. That spending increase was the biggest since a 1.3 percent jump last February. The index of Chicago-area purchasing managers -- generally regarded as an early indicator of changes in business conditions -- notched up from 61.6 in August to 63.6 in September. (Any reading over 50 shows the economy is expanding.) On Wall Street, the Dow Jones industrial average fell 11.44 points, to 3843.19, as the stock of large, blue-chip companies continued to register damage. But the broader market rose slightly, with the S&P 500 up 0.48, to 462.71. And NASDAQ stocks jumped 4.95, to 764.29. Meanwhile, bond prices increased a bit, driving the yield on the benchmark 30-year Tr