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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 points) 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 per cent) to 2,245.38 and the Standard & Poor's 500 index increased a scant 1.38 points (0.11 per cent) to 1,262.90.
With trading thin ahead of the holiday, the market reacted to news that US employers shed 62,000 nonfarm 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 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 per cent, below the 50 per cent level that indicates expansion.
'This was not a pleasant way to send everyone into the long July 4 weekend,' said Mr 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.' Mr Fred Dickson, analyst at DA Davidson 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 per cent to US$4.83 (S$6.58) 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 per cent to US$12.49 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 per cent at US$20.66.
Bonds fell. The yield on the 10-year US Treasury bond rose to 3.973 per cent from 3.959 per cent on Wednesday and that on the 30-year bond increased to 4.531 per cent against 4.503 per cent. Bond yields and prices move in opposite directions.
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