Corrected to show that SunTrust raised the dividend on common shares to 10 cents from 5 cents, and that the Federal Reserve approved common share repurchases of up to $200 million through the first quarter of 2014.
The broad indices ended lower after official monthly employment numbers confirmed the pattern set by the ADP report earlier in the week.
The Department of Labor Statistics early on Friday reported that nonfarm payrolls in the U.S. grew by a seasonally adjusted 88,000 jobs during March, declining sharply from an upwardly revised 268,000 in February. The number of jobs added during January was also revised upward, to 148,000.The U.S. unemployment rate declined to 7.6% during March from 7.7% in February, however, this was because the workforce shrank by 496,000 during the month. Economists polled by Thomson Reuters expected nonfarm payrolls to grow by 200,000, with the unemployment rate staying at 7.7%. The Federal Reserve later reported that consumer credit in the U.S. during February grew at a seasonally adjusted annual pace of 7.8%, increasing from 5.5% in January. The increased pace for overall consumer credit growth mainly reflected a 10.9% growth rate for nonrevolving consumer loans, including automobile loans, increasing from a growth rate of 6.9% in January. Meanwhile, revolving credit balances during February increased at a slow annual rate of 0.8% in February, slowing from 2.3% in January. Investors poured money into U.S. Treasury securities, sending the closing yield on 10-year U.S. government paper to 1.694%, which was a significant decline of 6.8 basis points from the previous close. This is the lowest closing market yield for 10-year Treasury bonds since Dec. 11, when the yield was 1.66%. The closing market yield for the 10-year bond peaked this year at 2.07% on March 13, as investors anticipated the eventual curbing of the Federal Reserve's monthly purchases of $85 billion in long-term securities, in an effort to hold long-term rates down. The KBW Bank Index (I:BKX) was down slightly to close at 55.14, with 14 of the 24 index components showing declines.