NEW YORK ( TheStreet) -- Stocks surrendered a three-day winning streak Friday, closing a wobbly trading day with mild losses, as investors weighed lingering global economic concerns against a better-than-expected September jobs report. The Dow Jones Industrial Average, which ranged nearly 200 points during Friday's session, closed down by 20 points, or 0.2%, at 11,103. The S&P 500 lost 10 points, or 0.8%, to 1156, and the Nasdaq finished 28 points, or 1.1% lower, at 2479.
The major U.S. equity indices veered south at midday after Fitch Ratings lowered its credit ratings on both Italy and Spain. The agency said Italy's public debt and its low growth potential make it susceptible to external shocks. Meanwhile, Spain also could have trouble emerging from the eurozone debt crisis because of its low growth and high unemployment rates. Comments from Federal Reserve Bank of Atlanta President Dennis Lockhart suggesting that the U.S. is still vulnerable to risks from failures of financial firms also weighed on sentiment. Lockhart said U.S. bailouts aren't yet a thing of the past since regulators still haven't established procedures to allow for an orderly bank failure. Lockhart's comments and news that a rescue plan for Dexia, Belgium's largest bank, will be delayed pressured financials, the worst-performing sector of the session. In the U.S., the Financial Select Sector SPDR ( XLF) lost 3.5% at $11.84. Bank of America ( BAC) and JPMorgan Chase ( JPM) were the Dow's biggest laggards. Dexia cancelled a Saturday board meeting that was expected to discuss plans for breaking up the bank because of disagreements between Belgium's federal government and regional groups. The regional groups oppose the federal government's plan to nationalize Dexia's Belgian unit. Earlier, the Labor Department said the economy added 103,000 jobs in total with the private sector adding 137,000 jobs. The consensus estimate called for 60,000 additional jobs, according to Thomson One Analytics. After the previous unemployment report showed no jobs created in August, investors welcomed an upward revision to August payrolls. While the headline number was stronger than expected, economists noted however that the return of 45,000 Verizon ( VZ) workers previously on strike boosted payrolls significantly, and that the unemployment rate remained uncomfortably high at 9.1%. Stocks eased off the morning's highs as investors got a chance to fully digest the report. Ian Shepherdson, chief U.S. economist with High Frequency Economics, said the report was a relief although "risks remain." "The U.S. economy is just about hanging in there, but growth is very weak and susceptible to any adverse shock coming from the euro-zone," said research firm Capital Economics. Tech stocks weighed down the Nasdaq including life science technology developer Illumina ( ILMN). Shares plunged 31.9% to close at $11.84 after the company suspended its outlook for 2011 and said third-quarter revenue would come in well below Wall Street expectations. Of the some 2 billion shares that traded on the New York Stock Exchange, only 31% rose and 67% declined. On Thursday, sentiment got a lift from a better-than-expected reading on U.S. weekly new unemployment claims, speculation that the eurozone has a bank recapitalization idea in the works, and the promise of further liquidity help from the European Central Bank. The Dow broke solidly above 11,000 and enjoyed its biggest three-day gain since late August. European stocks turned positive after the release of the jobs report. London's FTSE gained 0.2% and Germany's DAX rose 0.5%. Asian markets followed Thursday's U.S. market higher with Japan's Nikkei index up 0.98% and Hong Kong's Hang Seng climbing 3.11%. Earlier Friday, August wholesale inventories rose 0.4%, slightly short of economist expectations of a 0.5% rise. Inventories ticked up 0.8% in July. Wholesale inventories reflect the amount of goods wholesalers have on hand to meet demand from buyers. Consumers have been spending cautiously, prompting retailers and wholesalers to limit their inventories. Sales among wholesalers rose 1% in August. A report on August consumer credit showed an unexpected decline of $9.5 billion after a $12 billion boost in July. Economists had been anticipating an increase of $7.75 billion. The benchmark 10-year Treasury lost 22/32, pushing the yield to 2.065%. The dollar strengthened against a basket of currencies, with the dollar index up 0.114%. Gold for December delivery lost $17.40, or 1.1% to settle at $1,635.80 an ounce. In other commodities, the November crude oil contract gained 39 cents, or 0.5%, to settle at $82.98 a barrel. -- Written by Chao Deng and Melinda Peer in New York.