Wall Street's main stock indexes finished mixed in quiet trade on Friday as data showing moderate US job gains last month helped limit profit taking following a two-day rally.
The Dow Jones Industrial Average edged up 5.69 points, or 0.04 percent, to close at 13,625.58, while the NASDAQ composite drifted down 2.87 points, or 0.11 percent, to 2,706.16.
The broad-market Standard & Poor's 500 index shed 2.68 points, or 0.18 percent, to 1,504.66.
The market held in a narrow range for most of the day as traders digested a strong two-day rally, fueled in part by a White House-brokered mortgage rescue plan aimed at stemming a tide of home foreclosures that could cripple the economy.
In what was seen as positive news for stocks, the US government reported 94,000 jobs were added to the economy last month.
The unemployment rate held steady at 4.7 percent.
The report was consistent with cooling growth but not with a severe downturn or recession some have feared. It also may allow the US Federal Reserve to continue cutting interest rates, analysts said.
"The report reassured investors that the economy is not heading into a recession," said Al Goldman, chief market strategist at AG Edwards. "At the same time, it did not discourage hopes for another interest rate cut when the Federal Reserve meets next week."
Fred Dickson, chief market strategist at DA Davidson & Co, said the aid plan and the prospect of lower interest rates is helping Wall Street keep a positive tone.
"Investor confidence in housing and the economy has momentarily been restored by comments coming from the Fed governors, the ability of major financial institutions to raise capital to restore their balance sheet and the president's proposal to partially stabilize the housing market," he said. "Time will tell if this marked the ultimate bottom of the slide in the subprime mortgage market or was a temporary stopping point."
"The stock market has rallied in tandem with the rally in the subprime secondary mortgage market. Unless the Fed delivers a lump of coal into Wall Street's stocking next Wednesday, we see the current rally continuing through year-end," Dickson said.
Most analysts expect the Fed to cut its federal funds rate, currently at 4.5 percent, by a quarter-point. A few say a half-point cut is possible, but that likelihood was diminished by the employment report.
Among stocks in focus, News Corp rose 0.41 percent to US$21.93 as the media conglomerate headed by Rupert Murdoch announced a series of management changes as it prepares to close a deal to acquire Dow Jones & Co owner of The Wall Street Journal.
Yum Brands advanced 0.95 percent to US$39.42 as the owner of KFC and Pizza Hut restaurants boosted its outlook for global earnings growth.
In technology, Palm slid 12.9 percent to US$5.74 as the maker of smartphones said shipping delays would dent profits.
Bonds lost ground as markets braced for next week's Fed meeting. The yield on the 10-year US Treasury bond rose to 4.120 percent from 3.998 percent on Thursday and that on the 30-year bond increased to 4.585 percent from 4.479 percent.
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