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NEW YORK - Wall Street shares ended mixed Friday as investors closed out a positive week and digested a milder-than-expected report on job losses that eased fears of a deep downturn for the US economy.
The Dow Jones Industrial Average closed up 48.20 points (0.37 percent) at 13,058.20. The blue-chip index has now nearly recouped its losses for 2008, and is down around 1.56 percent for the year to date.
The Nasdaq composite meanwhile fell 3.72 points (0.15 percent) to 2,476.99 while the broad-market Standard & Poor's 500 index managed a gain of 4.56 points (0.32 percent) to 1,413.90.
Helping sentiment early was a report showing the US labor market held up better than expected in April despite fears of an economic slump, with 20,000 jobs cut in the month against expectations of a loss of 75,000.
"The report suggests that the US labor market didn't decelerate in April, with some investors now inclined to believe the economic downturn may not be as hard-felt as previously thought," said Andrea Kramer at Schaeffer's Investment Research.
Al Goldman at Wachovia Securities said gains faded late in the day "in a sign that the market is short-term extended" after positive performances over the past three weeks.
Goldman said the market tone is improving as fears ease about a wider financial crisis. He said the Federal Reserve appears to be close to the end of its rate-cutting cycle, which will help the dollar and ease commodity speculation.
"The market is becoming increasingly convinced the Fed is ready for a pause, providing further support for the upside dollar reversal," he said.
"Commodities, previously purchased as a speculative hedge against the falling dollar, are coming under heavy selling pressure."
The market action came as the US Federal Reserve and key European central banks announced a fresh offensive against a global credit crisis that has gridlocked lending and slowed the world economy.
The Fed boosted the amount being offered in direct loans to banks through a new auction system and eased terms for credit to brokerage firms, which until recently did not have access to the central bank.
"They're trying to address every aspect of the (credit) problem," said Joel Naroff at Naroff Economic Advisors. "The problem is no longer are rates low enough, it's that there's got to be enough liquidity in the system for banks to start lending again."
Among stocks in focus, Yahoo jumped 6.9 percent to 28.67 dollars amid growing speculation that a hostile bid for the Internet giant would be unveiled soon by software titan Microsoft, down 0.54 percent at 29.24.
Oil giant Chevron added 0.4 percent to 95.32 after reporting profits rose to 5.17 billion dollars in the latest quarter, helped by surging crude oil prices.
The finance sector responded positively to the latest Fed action. Bank of America rose 1.02 percent to 39.79 dollars and Citigroup climbed 1.54 percent to 26.39.
Bonds fell in a sign of growing risk appetite. The yield on the 10-year US Treasury bond increased to 3.845 percent from 3.749 percent Thursday and that on the 30-year bond rose to 4.565 percent against 4.484 percent. Bond yields and prices move in opposite directions.
European exchanges rose strongly, helped by the US payrolls report.
The London FTSE 100 index gained 2.11 percent to end the day at 6,215.50, while in Paris the CAC 40 rose 1.46 percent to 5,069.71. The Frankfurt Dax added 1.36 percent to close at 7,043.23.
- AFP /ls
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