Dow Snaps Streak, but Up for Week

Bloomberg News

The S&P 500 pit at the Chicago Board of Trade on Tuesday, when the index swung wildly from a loss to a gain in the final hour.

Stocks finished lower and the Dow Jones Industrial Average snapped a three-day winning streak, as financial stocks fell and Europe's sovereign-debt problems overshadowed a stronger U.S. employment reading.

The Dow Jones Industrial Average declined 20.21 points, or 0.2%, to 11103.12, following a streak of three straight triple-digit gains. Despite Friday's loss, the blue-chip measure gained 1.7% for the week and advanced for the third week in four.

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The Standard & Poor's 500-stock index shed 9.51 points, or 0.8%, to 1155.46, but ended 2.1% higher for the week, snapping a two-week losing streak. The technology-oriented Nasdaq Composite lost 27.47 points, or 1.1%, to 2479.35, but added 2.7% for the week.

Stocks advanced early in the session after U.S. September nonfarm payrolls rose more than expected and an especially weak August reading was revised higher. But indexes dropped after Fitch Ratings issued ratings cuts for Italy and Spain, two of the largest euro-zone economies that also are sovereign-debt trouble spots.

"The jobs number was better than expected. It's better than a poke in the eye. [But] I think that Europe is the thing that matters more," said Karl Mills, president and chief investment officer at Jurika Mills & Keifer.

Although the U.S. economy added more jobs than expected last month, that the outlook remains murky. However, Mesirow financial economist Adolfo Laurenti says that the jobs uptick reduces the risk of a double-dip recession.

Taking Stock

How the markets fared this week.

Blue chips advanced 1.7%, finishing at 11103.12 and up two consecutive weeks

The S&P 500-stock index dipped into bear-market territory on Tuesday, but climbed in a late-day rally to evade its claws

Copper rose 3.9%, snapping a four-week losing streak

Treasury prices fell, pushing the 10-year yield up to 2.067%

Oil climbed 4.8%, to $82.98 a barrel, its largest weekly percentage gain since March

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Investors pressed the sell button on safe-haven Treasury bonds as an upbeat jobs report diluted fears that the world's biggest economy was headed into a recession, Matt Phillips reports on Markets Hub.

The S&P 500's financial components fell 3.7%, leading decliners, and finished the week flat despite the broad measure's weekly advance. Bank of America shed 38 cents, or 6.1%, to $5.90, leading blue-chip stocks lower, followed by J.P. Morgan Chase, which lost 1.68, or 5.2%, to 30.70.

Consumer stocks rose after the jobs report, helping limit losses. Wal-Mart Stores led the Dow's gainers as it rose 95 cents, or 1.8%, to 53.70. Home Depot added 54 cents, or 1.6%, to 33.92.

"We thought that the jobs report was positive. It should be more reassuring to retail investors," said Kate Warne, investment strategist at Edward Jones.

Treasury prices fell on the jobs report, with the 10-year note dropping 23/32 point to yield 2.067%. Gold lost 1.1%, to settle at $1,634.50 a troy ounce. Oil edged up 0.5%, to close at $82.98 a barrel.

S&P 500 consumer-staples and utilities stocks finished higher. The two sectors are commonly viewed as defensive.

Sprint Nextel slumped 60 cents, or 20%, to 2.41, to lead S&P 500 decliners. The company said it will need to raise money for a network upgrade and to help cover higher costs that are expected from offering the iPhone. The network upgrade dealt a blow to Clearwire's stock, which lost 66 cents, or 32%, to 1.39. The plan unveiled Friday will use a competitor to Clearwire's technology.

Biotechnology and medical-instrument companies were among the worst performers in the S&P 500 after medical-research-equipment maker Illumina cast a pall on the sector by saying that third-quarter revenue would be well below expectations. The company also suspended its full-year outlook. Shares tumbled 12.75, or 32%, to 27.18.

PerkinElmer shed 1.62, or 8.3%, to 17.93. Life Technologies lost 2.56, or 6.5%, to 36.82, and Thermo Fisher Scientific shed 3.18, or 5.9%, to 50.49.

In corporate news, ServiceSource gained 1.22, or 9.1%, to 14.57. The company said it expects to report third-quarter adjusted earnings above prior estimates and raised its full-year revenue forecast.

Cardiovascular Systems slumped 2.72, or 26%, to 7.58. The company indicated that fiscal first-quarter revenue growth would be smaller than anticipated.

Smith & Wesson gained 14 cents, or 5.3%, to 2.78. The gunmaker said it intends to divest its perimeter security business in order to focus on its core firearms operations.

In Friday economic data, wholesale-inventory figures undershot economists' expectations, highlighting companies' unwillingness to bulk up in a weak economy. Consumer credit data showed that U.S. consumers were cautious about finances in August, decreasing outstanding credit by $9.5 billion, to $2.44 trillion, the biggest drop since April 2010.

Write to Brendan Conway at brendan.conway@dowjones.com

More Markets Coverage

Treasury Prices Pare Losses

Gold Prices Slide 1.1%

Oil Settles Higher Near $83

Euro Retreates After Downgrades

Emerging-Market Currencies Gain

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