Strong Jobs Data Sink Stocks

"The equity markets should be on the defensive with this number, as the bullish scenario hinges on a rate cut," said Barry Hyman, equity market strategist with EKN Financial. "Expectations of a Fed rate cut are going to ease, especially with the upward revisions to prior months. This shows that the economy, while slowing, is still maintaining its pace."

All told, the Dow finished the shortened week lower by 65 points, or 0.5%, and the S&P 500 was down 8 points, or 0.6%. The Nasdaq, meanwhile, rose about 19 points, or 0.8%.

Volume was strong, with 2.86 billion shares changing hands on the New York Stock Exchange. Nearly 2.07 billion shares traded on the Nasdaq. Overall, losers beat winners roughly 3 to 1.

Treasuries were lower. The 10-year note fell by 10/32 to yield 4.65%, and the 30-year bond sank 17/32 to lift the yield to 4.74%. The dollar was rallying against most other currencies.

By sector, oil stocks were among the few that advanced, with both the Philadelphia Oil Service Sector Index and the Amex Oil Index adding 0.4%. Metal stocks were weak. The Philadelphia Gold & Silver Sector Index slumped 1% and the Amex Gold Bugs Index finished lower by 0.9%.

Another big story revolved around the mild turnaround in oil prices. Crude finished higher by 72 cents at $56.31 a barrel in Nymex trading, after futures briefly fell below the $55-a-barrel level earlier. The increase halts a two-session decline that dropped oil prices by roughly 8% this week. Other energy prices were mixed.