North American markets fell Friday, giving back this week’s strong gains as gloomy corporate news and a report showing anemic U.S. economic growth put investors in a selling mood.

The S&P/TSX composite index fell 39.86 points to 6,521.69. For the week, the index finished down just four points, as losses on Thursday and Friday erased early gains.

The U.S. economy grew at a less than expected pace in the first quarter, hit by the war in Iraq and harsh winter weather. Jitters over the economic impact of severe acute respiratory syndrome added to the selling pressure.

Technology stocks felt the sting from a sour brokerage call on the key semiconductor sector.

In Toronto, the information technology sub-index fell 2.79%, while the heavily weighted financial services sector slipped 0.84%.

Nortel Networks fell 10¢ to $3.65, even as brokerage houses lauded the telecom equipment maker for a surprise first-quarter profit.

Open Text, which also beat first-quarter expectations, fell $2.85 to $40.50.

Manulife Financial, took the worst hit among financials, falling 95¢ to $36.80, one day after posting a lower-than-expected first-quarter profit, while TD Bank slipped 39¢to C$33.97.

In Friday’s earnings news, TransCanada PipeLines Ltd. reported an 11% jump i in first-quarter earnings. Its shares finished the day up 44¢ at $22.90.

On the TSX, declines beat advances 588 to 499, with 209 unchanged. Toronto market volume was 184.4 million shares worth $2.38 billion.

The junior TSX Venture Exchange dipped 5.11 points to 1,039.84.

The Dow Jones industrial average fell 133.69 points to 8,306.35. The S&P 500 index lost 12.62 points to 898.81. The Nasdaq composite index fell 22.69 points, to 1,434.54.

For the week, the Dow fell 0.38% , the Nasdaq gained 0.63% and the S&P 500 i advanced 0.59%.

The Canadian dollar recovered all of Thursday’s SARS-induced losses. The loonie closed 0.35 of a cent higher at US69.06¢. The dollar gained 0.18 of a cent this week, closing near the three-year high — US69.09¢ — that was reached Tuesday.