(Corrects to show Citigroup's exit from Dow occurs on Monday at start of trading and not after bell)
NEW YORK - U.S. stocks flip-flopped throughout Friday's session, with the major indexes ending split as investors paused to consider conflicting signals in monthly U.S. jobs data.
Investors also sold some recent winners to take some profits from the spring rally, which has driven the S&P 500 up almost 40 percent from its 12-year closing low on March 9.
Trading was choppy as the stock market initially started higher and then drifted lower as investors reassessed the implications of the latest jobs report.
The Labor Department reported that employers cut 345,000 jobs in May -- substantially less than analysts had forecast -- but the U.S. unemployment rate hit 9.4 percent, its highest since 1983.
The data underscored that the U.S. economic picture remained uncertain even after some recent signs of improvement.
There was a mixed bag from the economic news, said Ryan Detrick, senior technical strategist at Ohio-based Schaeffer's Investment Research.
Initially people saw the 345,000 number and everyone got a little excited, then realized the unemployment rate was worse than expected, and there's the fact that it's Friday and the sellers took advantage to take some profits.
The Dow Jones industrial average <.DJI> gained 12.89 points, or 0.15 percent, to 8,763.13. The Standard & Poor's 500 Index <.SPX> declined 2.37 points, or 0.25 percent, to 940.09. The Nasdaq Composite Index <.IXIC> dipped 0.60 of a point, or 0.03 percent, to 1,849.42.
GRAB THAT UMBRELLA
Investors opted to book profits from the market's recent winners -- materials, energy, financial and technology shares.
Shares of JPMorgan
On Monday, effective at the start of trading, Citigroup will be replaced in the blue-chip Dow average with Travelers
In Friday's session, investors also sold Chevron Corp
DOW FLIRTS WITH GAIN FOR YEAR
During Friday's seesaw trading, the Dow flirted once again with turning positive for the year -- rising 1 percent to a session high at 8,839.40; that advance brought the Dow up 63.01 points or 0.72 percent from its year-end 2008 close.
By the end of the day, though, the Dow had cut its gains but still ended just 13.26 points, or 0.15 percent, from the break-even point. Earlier this week, the Dow made at least two fleetings attempts intraday to rise above its December 31, 2008, close at 8,776.39.
Despite a subdued session, all indexes registered their third straight weekly advance. The Dow rose 3.1 percent and the S&P 500 gained 2.3 percent, while the Nasdaq climbed 4.2 percent.
On Nasdaq, Intel Corp
The semiconductor index <.SOXX> dropped nearly 2 percent.
Even so, those investors betting on a turnaround in global economic prospects snapped up shares of big manufacturers and exporters, including aircraft maker Boeing Co
Shares of Wal-Mart Stores Inc
As a discount retailer, Wal-Mart is one of the companies expected to thrive in a downbeat economy.
Friday's volume was moderate on the New York Stock Exchange, where about 1.26 billion shares changed hands, below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.31 billion shares traded, above last year's daily average of 2.28 billion.
Despite the Dow's modestly higher finish, decliners slightly outnumbered advancers by 1,539 to 1,460 on the NYSE. On Nasdaq, about five stocks fell for every four that rose.
(Editing by Jan Paschal)