Stocks dipped on Friday as investors weighed the latest batch of Q1 earnings reports against strong U.S. economic data. Despite the session's weakness, the S&P 500 notched its third straight month of gains in April, adding more than 5% this week as investors bet on a big economic recovery. The Dow also rose about 2.7% and the Nasdaq outperform at 5.4%.

For U.S. economic data, U.S. personal income increased by the most on record in March on the back of historic levels of fiscal stimulus. Personal income rose at a better-than-expected 21.1% in March over February, the Bureau of Economic Analysis reported Friday. Personal spending also increased at a more-than-expected rate last month at 4.3%, while the personal savings rate soared to 27.6%.

Meanwhile, the University of Michigan's Consumer Sentiment Index reading for April came above expectations at 88.3, above the preliminary reading of 86.5 and March's final of 84.9.

"The April survey recorded continued gains in consumer confidence due to a growing sense that the upward momentum in jobs and incomes will persist," Richard Curtain, chief economist for Survey of Consumer, said in a statement. "The renewed confidence is due to record federal stimulus spending, both recently passed and proposed, as well as the positive impact from a growing share of the population who are vaccinated."

"The largest and most important change in April was that an all-time record number of consumers expected declines in the unemployment rate during the year ahead. Even if a booming economy resulted in higher inflation, consumer optimism would not diminish since consumers have already anticipated a temporary increase," Curtain continued. "Overall, the data indicate an exceptional outlook for consumer spending through mid-2022. The size and persistence of the spending gains depend on continued job growth as well as wages that effectively draw people back into the labor force."

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): -0.72% or -30.30 points to 4,181.17

Dow Jones Industrial Average (DIA  ): -0.54% or -185.51 points to 33,874.85

Nasdaq Composite Index (QQQ  ): -0.85% or -119.86 points to 13,962.68

For Stocks, Amazon (AMZN  ) rose higher after the ecommerce giant recorded a record first quarter profit. Twitter (TWTR  ) plunged over 15% after the social media company's Q1 user growth results and revenue guidance fell short of expectations.

For Sector Performance, sectors on the S&P 500 were mostly lower, with Energy (XLE  ), Information Technology (XLK  ) and Materials (XLB  ) leading losses. Only Utilities (XLU  ), Real Estate (XLRE  ), Consumer Discretionary (XLY  ) and Consumer Staples (XLP  ) ended the session in the green.

For Commodities and Currency, the U.S. Dollar (UUP  ) rose on Friday on positive U.S. economic data. In afternoon trading, the dollar index ended the week up 0.5% against six other currencies. The index was last up 0.7% at 91.263. Gold (GLD  ) prices fell on Friday on the stronger dollar and U.S. economic data. Spot gold was down 0.1% at $1,770.41 per ounce, while U.S. gold futures stayed flat at $1,767.00 per ounce. Crude oil futures also declined on Friday on demand concerns following coronavirus pandemic lockdowns in India and Brazil. International benchmark Brent Crude (BNO  ) was 1.91% lower at $67.25 per barrel, while domestic index West Texas Intermediate (USO  ) settled 2.2% lower at $63.58 each.

For the week ahead, market participants will react to the April jobs report, as well as another wave of quarterly earnings reports from companies like General Motors (GM  ), Pfizer (PFE  ), Moderna (MRNA  ), DraftKings (DKNG  ) and Beyond Meat (BYND  ).