Wall Street Holds Steady

Updated from 4:05 p.m. EST

Stocks in New York closed little changed Friday as the latest employment report from the government failed to give traders any reason to make big bets ahead of next week's Federal Reserve meeting.

The Dow Jones Industrial Average tacked on 5.69 points at 13,625.58, and the S&P 500 slipped 2.68 points, or 0.2%, to 1504.66. The Nasdaq was off 2.87 points, or 0.1%, to 2706.16.

The generally muted action came after the Labor Department said the economy added 94,000 workers last month, about 14,000 more than had been expected by analysts surveyed for a Bloomberg poll. The unemployment rate was unchanged at 4.7%.

While November was down from October's upwardly revised 170,000, the headline number likely keeps the "Goldilocks" scenario alive. Many traders are hoping the not-too-hot, not-too-cold story can remain intact, allowing the economy to avoid a recession yet still giving the Fed room to lower rates again.

Fed policymakers will next gather on Tuesday, and much of Wall Street is looking for a cut of at least 25 basis points in the fed funds target rate, which is currently at 4.50%. Some want the Fed to go 50.

At its past two meetings, the central bank has reduced rates by a total of 75 basis points in an effort to stop the economy from succumbing to the housing downturn and credit crunch, but in recent weeks, officials have seemed divided on the next step, with some bankers suggesting new cuts might not be necessary and others appearing more dovish.

Kurt Karl, chief U.S. economist for Swiss Re, says the jobs report wasn't a great one, but it does suggest a low-growth economy rather than a recession. However, he believes there's a 45% chance a recession could become a reality over the next 12 months. "We have mixed signals out there currently," he says.