U.S. stocks fell on Friday as interest-rate worries outweighed expectations that stronger-than-expected jobs creation and tame wage inflation in March would lead to growing profits.
Stocks began to lose steam after U.S. Treasury long-term debt yields rose to their highest in more than three years on expectations the Federal Reserve will continue raising interest rates following the employment report.
The Dow Jones industrial average (^DJI - news) was down 26.66 points, or 0.24 percent, at 11,189.84. The Standard & Poor's 500 Index (^SPX - news) fell 4.89 points, or 0.37 percent, at 1,304.15. The Nasdaq Composite Index (^IXIC - news) was down 6.94 points, or 0.29 percent, at 2,354.23.
What we're having lately is a lot of volatility in the market. There's a fixation with the Fed, said Larry Peruzzi, senior equity trader at The Boston Company Asset Management, a Mellon subsidiary.
U.S. employers added 211,000 nonfarm jobs in March, outpacing estimates for a 190,000 jobs, the Labor Department said. The unemployment rate fell unexpectedly to 4.7 percent from 4.8 percent.
Benchmark 10-year notes fell for a yield of 4.94 percent -- its highest level since June 2002 -- compared with 4.90 percent late on Thursday.
Shares of oil companies fell after a drop in crude oil prices on hopes lost Nigerian output could be restored.
Crude for May delivery fell 69 cents to $67.25 a barrel. Exxon Mobil (NYSE:XOM - news) fell 0.3 percent to $61.89.
Expectations for robust earnings growth boosted shares early in the session, with industrial and transport stocks leading the advance as their profits are more reliant on a growing economy.
The transport index (^DJT - news) rose to a record high, gaining 0.4 percent.
Shares of Alcoa Inc. (NYSE:AA - news), the world's largest aluminum producer, which will kick off the first-quarter earnings reporting season on Monday, rose 1.6 percent to $32.70 on the New York Stock Exchange.
On Nasdaq, shares of Starbucks Corp. (Nasdaq:SBUX - news), hit a record high, rising 3.4 percent to $38.77, a day after the company posted better-than-expected growth in March same-store sales.
But shares of Research In Motion Ltd. (Toronto:RIM.TO - news)(Nasdaq:RIMM - news), proved the biggest drag on the Nasdaq, off 5.4 percent to $79.87, a day after the maker of the Blackberry wireless e-mail device forecast a shortfall in first-quarter results and subscriber growth.
(Additional reporting by Jennifer Coogan)