MARKET REPORT

Miserly jobs gain drags down market

NEW YORK - Stocks fell on Wall Street Friday after the government reported that U.S. employers added the fewest jobs in nine months in March and more people gave up looking for work.

The Dow Jones industrial average ended 40.86 points lower at 14,565.25, a loss of 0.3 percent. The index was down as much as 171 points in the early going. It rose gradually throughout the day to reclaim much of its early loss.

U.S. employers added just 88,000 jobs in March, according to the Labor Department’s monthly survey. That’s half the pace of the previous six months. The report was far worse than economists had forecast and a disappointment for investors after positive signs on housing and the job market over the winter.

The survey, one of the most closely watched indicators of the economy, dented investors’ confidence that the U.S. was poised for a sustained recovery. The stock market has surged this year, pushing the Dow to another record high close on Tuesday. The index is still up 11.2 percent this year.

“Things are still looking decent, but there’s no doubt that this was a bit of a disappointment,” said Brad Sorensen, Charles Schwab’s director of market and sector research. “We’re watching to see: is this the start of another soft patch?”

In other trading, the Standard & Poor’s 500 index fell 6.70 points, or 0.4 percent, to 1,553.28. The index logged its worst week of year, falling 1 percent.

The Nasdaq composite, which includes many technology companies, fell 21.12 points, or 0.7 percent, to 3,203.86.

Slightly more stocks fell than rose on the New York Stock Exchange. Consolidated volume was thinner than average at 3.4 billion shares.

Technology stocks fell the most of the 10 industry groups in the index, dropping 1 percent. Among big decliners in tech stocks, Cisco Systems fell 43 cents, or 2 percent, to $20.61. Oracle dropped 34 cents, or 1 percent, to $32.03.

Investors were reducing their exposure to risk. The utilities and telecommunications industries bucked the downward trend in the market. Both rose 0.4 percent. The rich dividends and stable earnings provided by those companies make them attractive to investors who want to play it safe.

Natural-gas companies were among the best performers on the S&P 500 as the price of the fuel rose on concerns about supplies. Cabot Oil & Gas climbed $3.32, or 5.1 percent, to $67.96 and WPX Energy gained 80 cents, or 5.2 percent, to $16.15.

Stocks pared their early losses as some investors inferred that slowing U.S. growth meant that the Federal Reserve would stick to its stimulus program. The central bank is buying $85 billion in bonds every month as part of an effort to revive the economy. Its actions have been a big factor pushing the stock market higher this year.

Business, Pages 28 on 04/06/2013

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