NEW YORK – U.S. stocks closed lower on the day Friday, although the major averages logged solid quarterly gains due in large part to lower oil prices, allowing the Dow Jones Industrial Average to give its best third-quarter performance in 11 years.

A string of economic reports over the last three months also helped investors rally to the idea that U.S. economic growth will moderate, but remain at adequate levels to sustain corporate profits and job creation.

The Dow industrials closed down 39.38 points at 11,679.07.

On several occasions in Friday’s the session, the benchmark index topped its record-high close of 11,722.98 from Jan. 14, 2000. The Dow’s intraday record, set that same day, remains 11,750.28.

The Nasdaq Composite Index fell 11.59 points to 2,258.43 while the S&P 500 Index lost 3.30 points to end at 1,335.85.

For the quarter the Dow gained 4.7 percent, its strongest advance since the third quarter of 1995. The Nasdaq rose 4 percent in the quarter, making for its best third-quarter performance since 2003. The S&P 500 advanced 5.2 percent in the quarter.

“The gains we’ve seen derive from the conclusion that the economy is slowing, but not contracting or turning lower but there is not a high level of certainty in that conclusion. That’s why the market is inching higher rather than striding higher,” said Hugh Johnson, chairman of Johnson Illington Advisors.

Johnson said the quarter has been helped by a sharp fall in energy prices that has helped offset some of the concern over a slowing housing market and its impact on economic growth.

At the end of the third quarter, General Motors Corp. remains the top performer on the Dow since the beginning of 2006, with a staggering 70 percent gain. It places the car maker well above the No. 2 and 3 gainers, drug company Merck & Co. and AT&T, both of which are up about 32 percent.

U.S. core consumer price inflation rose to an 11-year high in August as household incomes and spending rose at the slowest pace this year, the Commerce Department reported.

Consumer prices rose 0.2 percent in August, and are up 3.2 percent in the past year, the government said. Core consumer prices, which exclude food and energy, also rose 0.2 percent. The core personal consumption expenditure price index – the key inflation gauge followed by the Federal Reserve – has gained 2.5 percent in the past 12 months, the most since January 1995.

Meanwhile, consumer sentiment strengthened in late September, according to media reports Friday of proprietary research from the University of Michigan. The UMich consumer sentiment index rose to 85.4 in late September from 84.4 earlier in the month. This is the highest sentiment level since April. The increase was in line with forecasts of Wall Street economists. The drop in gasoline prices in September has boosted confidence, economists said.

And in a relief for investors, business activity expanded at a rapid rate in the Chicago region in September, the NAPM-Chicago reported. The Chicago purchasing managers’ index rose to 62.1 percent in September from 57.1 percent in August. It’s the highest reading in a year. Readings over 50% indicate that most firms surveyed are reporting growth. Economists were expecting a decline to about 55.7 percent in September.

Last week stocks fell on fears over the extent of the nation’s economic slowdown after the Federal Reserve Bank of Philadelphia said manufacturing activity in the Philadelphia region fell in September, the first monthly decline since April 2003, led by a drop in new orders and shipments.

For Paul Nolte, director of investments at Hinsdale Associates, the reports confirm that “outside the housing sector, the economy doesn’t look all that bad and that’s one of the reasons we’ve been rallying.”

There was a warning from a Fed official that any decision to start cutting interest rates may come later rather than sooner. William Poole, the president of the St. Louis Fed, said he won’t be quick to support a move to cut interest rates until he is convinced by the economic data that a slowdown is underway.

On the broader market for equities, there were 19 decliners for ever 13 stocks on the rise n the New York Stock Exchange, while losers had a 17 to 11 edge over winners on the Nasdaq.

By sector, gold stocks were lower as the precious metal fell on the futures markets. Home builders, computer software stocks and utilities were other areas of weakness.

Computer hardware stocks rallied, buoyed by a surge in shares of Research in Motion

Volume was 1.463 billion on the Big Board, and 1.878 billion on the Nasdaq.

The U.S. dollar pared gains mid-session. The euro late in the day was down just 0.2 percent at $1.2679, off a low of $1.2636. Against the Japanese yen, the greenback was up 0.2 percent at 118.12.

Gold futures ended lower for the first time in eight sessions, as traders took in profits from a seven-session rally that lifted prices for the metal by nearly 5 percent. On the week, gold is up 1.5 percent. The benchmark December contract ended down $6.70 at $604.20 an ounce.

Treasury prices closed lower, sending yields higher after the latest data held hints that the economy and pace of inflation could still be vigorous enough to induce the Federal Reserve to continue lifting rates.

The benchmark 10-year note closed off 6/32 at 101 28/32, with its yield at 4.635 percent.

Crude-oil futures ended higher on the day, but lower on the month, after a volatile session. The benchmark November contract ended up 15 cents at $62.91 a barrel, but slid 12 percent on the month.

And in a relief for investors, business activity expanded at a rapid rate in the Chicago region in September, the NAPM-Chicago reported. The Chicago purchasing managers’ index rose to 62.1 percent in September from 57.1 percent in August. It’s the highest reading in a year. Readings over 50 percent indicate that most firms surveyed are reporting growth. Economists were expecting a decline to about 55.7 percent in September.

Last week stocks fell on fears over the extent of the nation’s economic slowdown after the Federal Reserve Bank of Philadelphia said manufacturing activity in the Philadelphia region fell in September, the first monthly decline since April 2003, led by a drop in new orders and shipments.

Shares in Research In Motion Ltd. shot up 19.3 percent to $102.67 after the Canadian pioneer of wireless e-mail devices posted a forecast-beating 27 percent rise in quarterly profit as sales grew by more than a third due to strong demand for its new BlackBerry products.

Its strong performance prompted an upgrade from Deutsche Bank, and a massive price target increase to $140 from $100 from RBC Capital Markets. But Citigroup cut the stock to a sell saying the management’s subscriber outlook for the current quarter is too optimistic.

Elsewhere in the technology sector, shares in Hewlett-Packard Co. rose 2 percent to $36.69. On Thursday, current and former executives of the computer and printer maker sparred with lawmakers on Capitol Hill over the technology giant’s probe into leaks coming from its boardroom.

Merrill Lynch, in a note to clients, said it believes investor sentiment surrounding the company’s congressional hearings has reached an inflection point. “Although we expect the board investigation issue will persist for some time in the media, we believe the peak of investor worry is behind us and that the issue will likely be less of a distraction for H-P management going forward,” the broker said.

Ford Motor Credit said late Thursday it will cut 2,000 white-collar positions and consolidate its North American branches as part of its parent company’s vow to step up its cost-cutting efforts.

Under the helm of newly tapped Chief Executive Alan Mulally, Ford Motor Co. is planning to cut 16 plants and shed 30,000 jobs in North America. Ford’s stock closed down 7 cents at $8.09.