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NEW YORK: Wall Street's indexes closed mixed on Thursday after a key labour market report showed a drop in US payrolls but was not as bad as some investors had feared.
The Dow Jones Industrial Average advanced 73.03 points (0.65 percent) to end at 11,288.54 as markets closed early ahead of the Independence Day holiday.
The tech-heavy Nasdaq composite however fell 6.08 points (0.27 percent) to 2,245.38 and the Standard & Poor's 500 index increased a scant 1.38 points (0.11 percent) to 1,262.90.
With trading thin ahead of the holiday, the market reacted to news that US employers shed 62,000 non-farm jobs and the unemployment rate held steady last month at 5.5 percent, roughly in line with forecasts.
The report, seen as one of the best indicators of economic momentum, "has traders breathing a sigh of relief since there were fears in some corners that the number would be worse," analysts at Charles Schwab & Co. said in a note to clients.
The market wobbled somewhat after a survey by the Institute for Supply Management showed the vast service sector of the US economy contracting in June. The ISM index fell to 48.2 percent, below the 50 percent level that indicates expansion.
"This was not a pleasant way to send everyone into the long July 4 weekend," said Joel Naroff at Naroff Economic Advisors.
"Investors had some hopes when the jobs numbers were not as bad as some feared but this report was worse than expected. Taking stock of the June data we have so far received, it appears the economy is flat."
Fred Dickson, analyst at DA Davidson & Co., said there was caution going into the holiday weekend.
"We expect to see traders opting not to go long into the holiday weekend," he said. "While many are probably already on vacation, those that are around are likely to be in an unforgiving mood for companies that disappoint or raise concerns."
Among stocks in focus, American Airlines parent AMR rallied 4.55 percent to 4.83 dollars as the carrier announced details of its restructuring and reports said it was nearing a deal for an alliance with one or more European airlines.
Nvidia meanwhile plunged 30.7 percent to 12.49 dollars as the computer graphics firm warned of weaker profits ahead. The warning weighed on the rest of the tech sector, with Intel down 1.29 percent at 20.66 dollars.
Bonds fell. The yield on the 10-year US Treasury bond rose to 3.973 percent from 3.959 percent on Wednesday and that on the 30-year bond increased to 4.531 percent against 4.503 percent. Bond yields and prices move in opposite directions. - AFP/de
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