Dow Ends to Downside

Updated from 4:11 p.m. EST

Stocks closed narrowly mixed Friday as uncertainty about how the Federal Reserve will interpret the latest employment report kept the major indices in a holding pattern.

The monthly jobs data, among the most important pieces of economic information the government releases every month, showed that 111,000 workers were added to U.S. payrolls in January. Economists had expected 150,000 positions created, according to a Bloomberg poll.

When the session wrapped up, the Dow Jones Industrial Average had fallen 20.19 points, or 0.16%, at 12,653.49. The S&P 500 was up 2.45 points, or 0.17%, to 1448.39, and the Nasdaq Composite added 7.50 points, or 0.3%, to 2475.88.

The jobless rate rose to 4.6% from 4.5%. No change had been anticipated. Average hourly earnings, a key inflation metric, rose a less-than-expected 0.2%.

Meanwhile, in what is becoming fairly routine, job growth for the prior two months was revised upward. The Labor Department now says 81,000 more employees were put to work in November and December than had been first thought.

"The report continues to lead the market along the 'Goldilocks' scenario of no inflation with modest growth," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "What might've derailed some of the market's move was the bump up in oil prices back over $59 a barrel. The fact that the Fed said early this week that inflation is under control should help the market look past some of this."

Bond traders sent rates down, suggesting they believe the numbers are more indicative of a cooling off of the economy than strength. Lately, the 10-year note was up 2/32 in price and yielding 4.83%, and the 30-year bond advanced 2/32 to yield 4.93%.