The blue-chip Dow Jones industrial average fell 79.83 points, or 0.86%, to 9,153.97. The broader Standard & Poor's 500 index lost 10.16 points, or 1.03%, to 980.15. The tech-heavy Nasdaq composite index was down by 19.43 points, or 1.12%, to 1,715.59.
An update on employment showed a drop in the jobless rate to 6.2% in July, from 6.4% in June. The details of the report were not as encouraging. Employers cut 44,000 jobs in the month, and the June data were revised down to a 72,000 decline in jobs, from 30,000 previously. The factory sector lost another 71,000 jobs while hours worked fell to 33.6 from 33.7. Average hourly earnings rose 0.3% from a revised 0.3% gain in June.
Other data were mildly positive. A broad manufacturing gauge, the Institute of Supply Management index edged up to 51.8 in July from 49.8 in June, not as strong a gain as expected following yesterday's jump in the Chicago PMI. The University of Michigan consumer sentiment index edged up to 90.9 in the final July reading versus the 90.3 preliminary figure.
On Monday, investors will get more data on manufacturing health in the form of factory orders. June orders are expected to rise 1.8%, while shipments increase 1.4%. The surprising strength seen in the durable goods report suggests we will see similar strength in this report, says MMS. The report should show solid trajectory of advance.
Other economic reports due next week include labor costs, jobless claims, inventories and consumer credit.
In upcoming earnings news, Cisco Systems (CSCO
) will report after the close of trading Tuesday. Other big names due next week: MetLife (MET
), Expedia (EXPE
), and Gillette (G
Treasuries finished mixed following Friday's employment data. Bonds opened on the defensive ahead of the payrolls data, but managed to claw back after the data proved less onerous than expected to exhausted bulls.
While some choppy, consolidative action is expected next week amid a light data calendar, supply looms large and threatens to keep the pressure as the Treasury auctions $113 billion in debt, notes MMS International.
European stocks finished with losses Friday amid a mixed jobs report in the U.S. In London, the Times-Stock Exchange 100 slid 58.60 points, or 1.41%, to 4,098.40, amid data that U.K. PMI rose to 50.9 from 49.5, its first gain since last October.
In Germany, the DAX Index shed 48.97 points, or 1.40%, to 3,438.89, though German PMI rose to 48.1 from 45.6 and retail sales rose 1.9% in June. In France, the CAC 40 stumbled 40.64 points, or 1.27%, to 3,169.63.
In Asia, major stock indexes ended higher following Thursday's triple play of solid economic data in the U.S. Japan's Nikkei index finished up by 48.46 points, or 0.51%, to 9,611.67, with help from shares in steel companies. Meanwhile, Hong Kong's Hang Seng index added 113.77 points, or 1.12%, to 10,248.60.