Stocks turn down on mixed jobs, Europe downgrades

October 7, 2011 - 4:15 PM
Wall Street

In this Oct. 4, 2011 photo, trader Jason Weisberg works on the floor of the New York Stock Exchang. Investors were cautious on Friday, Oct. 7, 2011, ahead of U.S. jobs figures, with stocks down slightly after enjoying a couple of bumper days on hopes of a Europe-wide plan to fix the banking sector.(AP Photo/Richard Drew)

A three-day rally in the stock market faded after a mixed jobs report and cuts to the credit ratings of Italy and Spain.

The Dow Jones industrial average dropped 20 points, or 0.2 percent, to 11,103.

The S&P 500 index fell 10 points, or 0.8 percent, to close at 1,155. The Nasdaq composite index fell 27, or 1.1 percent, to 2,479.

U.S. employers added 103,000 jobs last month, about double what economists had expected. The report countered short-term fears that the U.S. might be entering another recession. Yet it offered few signs that strong growth will return soon.

More than two stocks fell for every one that rose on the New York Stock Exchange. Trading volume was average at 4.7 billion.