Stocks end mixed as rate fears persist

Solid employment data failed to extend Wall Street’s rally Friday as renewed interest rate concerns spurred profit-taking and left stocks mixed. The major indexes also ended the week mixed.

Wall Street had a mild reaction to the Labor Department’s announcement that U.S. employers added 215,000 jobs in November, the biggest gain since July. That bested economists’ forecast for a 210,000 increase, and October’s growth of 44,000.

While the job growth bolstered a brightening economic landscape, some analysts are beginning to fear that the Federal Reserve may push interest rates higher now that the economy appears to be unfazed by hurricanes Katrina and Rita. Upbeat personal spending data sparked a rally Thursday and sent the Dow Jones industrials climbing 106 points.

Meanwhile, an approaching winter storm lifted crude futures a second day amid expectations for the cold weather to drive heating oil demand in the Northeast. A barrel of light crude rose 85 cents to settle at $59.32 on the New York Mercantile Exchange.

The Dow lost 35.06, or 0.32 percent, to 10,877.51.

Broader stock indicators were higher. The Standard & Poor’s 500 index added 0.41, or 0.03 percent, to 1,265.08, and the Nasdaq composite index rose 6.20, or 0.27 percent, to 2,273.37, a fresh four-year high.

Bond prices steadied after three days of losses, with the yield on the 10-year Treasury note flat at 4.52 percent from late Thursday. The dollar was mixed against other major currencies, while gold prices lingered above $500 per ounce.

Wall Street paused from its November rally this week despite support from a raft of government reports showing the economy has withstood a spike in energy costs following the hurricanes. Stocks finished the week mostly lower, ending a five-week winning streak that carried the S&P 500 and Nasdaq to their highest levels since mid-2001.

For the week, the Dow slipped 0.54 percent and the S&P 500 was off 0.25 percent, while the Nasdaq gained 0.46 percent.

Some analysts continue to cast doubt on the recent economic news and point to any number of indicators that could energize or spook a jumpy market. Robert Smith, chairman and chief investment officer of Smith Affiliated Capital, cautioned against being overly optimistic about the jobs data, saying the report is clouded by impending layoffs in the auto sector and hurricane-related rehiring.

“Even though the numerical number is better, the job quality isn’t better,” as evident in the slight 0.2 percent gain in average hourly earnings, Smith said.

Declining issues led advancers for most of the session, but advancers were ahead of decliners by 17 to 16 on the New York Stock Exchange at the close. NYSE volume of 1.53 billion shares fell behind the 1.89 billion shares changing hands on Thursday.

The Russell 2000 index of smaller companies added 0.36, or 0.05 percent, to 690.57.

Overseas, Japan’s Nikkei stock average surged 1.92 percent. Britain’s FTSE 100 gained 0.77 percent, Germany’s DAX index rose 0.79 percent, and France’s CAC-40 was higher by 0.56 percent.