S&P 500 futures rose 1.9 points at 1,404.80 and Nasdaq 100 futures improved 0.75 points at 1,795.50. Dow industrial futures rose 13 points.

On Thursday, U.S. stocks recovered from early losses after an unexpectedly weak reading of a Chicago-area manufacturing gauge. The Dow industrials slipped 4.8 points, the Nasdaq Composite edged off 0.5 of a point and the S&P 500 rose 1.1 points.

Though MarketWatch-compiled consensus estimates are for the index to rise to 51.8% from 51.2%, the sub-50 reading in the Chicago-area gauge on Thursday has traders ready for a decline. Any number above 50 indicates economic expansion.

Similar gauges in Europe and the U.K. were unexpectedly weak, though those polls held above the 50 mark.

Construction spending data in the U.S. for October also is due out.

The dollar on Friday advanced against rivals, notably the Japanese yen, after softer-than-forecast inflation data out of Japan. The British pound flattened out after reaching a new 14-year high.

Crude oil futures were 72 cents lower to $62.41 a barrel, and gold futures slipped $2.90 to $650 an ounce.

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Throughout most of the day stocks were lower after a Chicago-region manufacturing survey showed contraction in November. A weak outlook from Wal-Mart Stores Inc. , crude oil prices close to $63, and a continued slide in the dollar also weighed.

The Dow Jones Industrial Average closed down just 4.80 points at 12,221.93, after rebounding from an intraday low of 12,162. For November, the Dow rose 1.2%.

The S&P 500 rose 1.17 point to 1,400.65, while the Nasdaq Composite lost just 0.46 point to end at 2,431.77. For the month, the S&P rose 1.6% and the Nasdaq added 2.7%.

There was no real news to prompt the late session improvement in the major averages, according to Jim Awad, president of Awad Asset Management.

After a mixed opening, stocks had turned lower after the release of the Chicago purchasing managers index showed a reading of 49.9% in November from 53.5% in October.

The reading is the lowest since April 2003 and surprised economists who were expecting a rise to 54.4%.

Readings below 50 indicate contraction in the region, raising concern that a national survey on manufacturing this Friday might also show contraction.

"This was just another piece of bad news for the market today," said Art Hogan, chief market strategist at Jefferies & Co.

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With gasoline prices falling in September and October, overall consumer prices are up 1.5% in the past year, the lowest inflation rate in four years.

Nominal incomes rose 0.4%, the weakest growth since June, and a tenth lower than expected. However, with prices falling 0.2%, real (inflation-adjusted) after-tax incomes rose 0.6%, the second-best growth in more than a year.

Nominal spending increased 0.2 in October, a tick higher than the 0.1% expected. Nominal spending in September was revised lower to negative 0.2% from 0.1%.

Real spending in October was boosted by a 0.7% gain in purchases of nondurable goods. Spending on durable goods increased 0.2% and spending on services increased 0.3%.

With real disposable incomes rising faster than real spending, the personal savings rate improved to negative 0.6%, the highest since March. The savings rate has been negative for 19 consecutive months. The savings rate can be negative if consumers borrow or sell assets to support consumption.

On the income side, employee compensation increased 0.6% for the second straight month. Wages rose 0.6% while supplements such as benefits rose 0.5%.

Proprietors' income increased 0.1% after no growth in September. Income from assets, such as dividends and interest, increased 0.7%.

Personal taxes increased 1.2%.

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