Updated from 4:06 p.m. ESTStocks closed lower for the day and week Friday in a volatile session, as investors tried to determine what weaker-than-expected nonfarm payroll data might mean for Fed policy. After snapping a six-session losing streak Thursday, the Dow Jones Industrial Average shed 18.92 points, or 0.2% to 10,603.96. The S&P 500 fell 1.70 points, or 0.1%, to 1186.19, while the Nasdaq lost 1.39 points, or 0.07%, to 2089. For the first week of 2005, the Dow lost 1.7%, the S&P 500 lost 2.1% and the Nasdaq tumbled 3.9%. In other markets, the 10-year Treasury note sunk 3/32 in price to yield 4.27%, while the dollar weakened further against the yen and euro. Oil, which added more than $2 a barrel Thursday, ended down 13 cents at $45.43 a barrel. Volume on the NYSE was 1.48 billion shares, with decliners beating advancers by a ratio of 10-to-7. Volume on the Nasdaq was 2.19 billion shares, with decliners outpacing advancers 3-to-2. The economy created 157,000 jobs in December, less than the 175,000 expected by economists, the Labor Department said. November's gain, however, were revised higher, from 112,000 to 137,000. The jobless rate remained at 5.4% -- as expected -- in December. Wage pressure remained minimal as average hourly earnings rose just 0.1%. Early market reaction to the data was positive in what was seen as a well-timed tonic for a suddenly anxious market this week. "It was a Goldilocks report," said Larry Wachtel, senior market analyst with Wachovia Securities. "If it was up over consensus, it becomes a Fed concern about inflationary pressures and bonds would respond. If it was too weak, then it would be clear that corporations weren't hiring. You walk a fine line; too much good news is bad news. We got somewhat in the middle, and we're seeing the proper response from that." The optimistic interpretation aside, there's been growing debate that the market is experiencing tax-related selling after a big runup in late 2004. Stocks' slow fade Friday afternoon echoed daily patterns from earlier in the week. One reason for the weakness was the release of Federal Reserve minutes Tuesday showing concern among policymakers about possible speculative excess in asset markets. In corporate news Friday, health maintenance organization WellPoint ( WLP) lowered fourth-quarter earnings guidance to 90 cents a share, citing the cost of a debt buyback. The company previously put earnings at 95 cents to $1 a share. Wellpoint was up 40 cents, or 0.3%, to $115.80. Tiffany ( TIF) said sales for November and December rose 6% from a year ago, while overall sales rose 12% to $673.8 million. In the U.S., same-store sales rose 8% from a year ago over the two months. Tiffany gained $1.20, or 4%, to $31.50.