NEW YORK — A disappointing jobs report rattled Wall Street Friday, quashing a seven-day advance for the Nasdaq composite index and a five-day, 250-point rise for the Dow Jones industrials.
"You have to keep in mind we have had a significant run-up this week," said Arthur Hogan, chief market analyst at Jefferies & Co., who said higher-than-expected job cuts gave investors reason to lock in profits and were responsible for much of the market's losses.
The Dow closed down 84.56, or 0.9 percent, at 9,503.34. The loss followed a five-day advance of 254 points.
The Nasdaq dropped 10.73, or 0.6 percent, to 1,858.24, following a seven-day gain of 104 points. The
Standard & Poor's 500 index fell 6.58, or 0.6 percent, to 1,021.39, having garnered an eight-day gain of nearly 35 points.
Despite Friday's sell-off, the market's major gauges ended the week higher. The Dow rose 0.9 percent in its fifth straight winning week, an accomplishment last seen at the end of November.
The Nasdaq ended the week up 2.6 percent; the S&P, up 1.3 percent.
This past week's rallies were fueled by strong economic data, which on Thursday included big gains in factory orders and worker productivity.
But on Friday, the Labor Department reported that while the unemployment rate slipped to 6.1 percent in August, companies slashed payrolls by 93,000. Friday's report was weaker than expected and delivered mixed signals about the nation's overall economic health. Wall Street was expecting jobs to increase by 20,000 to 25,000, Hogan said.
"We are concerned about the jobs creation part of the economy," Hogan said.
Meanwhile, investment banks J.P. Morgan Chase & Co. and The Goldman Sachs Group Inc. raised their third-quarter economic growth expectations — to annualized rates of 5.5 percent and 5 percent, respectively.
Still, it was time for the market to pull back, analysts said.
"The markets are overbought, extended," said A.C. Moore, chief investment strategist for Dunvegan Associates in Santa Barbara, Calif.
A look at some of Friday's losers on Wall Street indicates that investors were indeed locking in recent gains. Procter & Gamble Co. fell 45 cents to $90.98, having climbed $2.63 on Thursday when it said its third-quarter earnings would beat analysts' expectations.
Cisco Systems Inc. declined 17 cents to $20.42, having gained 35 cents on Thursday following an upgrade by Goldman Sachs.