Associated Press
Saturday, December 9, 2006

NEW YORK, Dec. 8 -- Wall Street ended an erratic week with a moderate advance Friday. Investors welcomed a government employment report that painted the U.S. job market as robust, easing concerns that the economy is losing steam too quickly. The major indicators all posted gains for the week.

The Dow Jones industrial average was up 29.08, or 0.24 percent, at 12,307.49. The Standard & Poor's 500-stock index was up 2.55, or 0.18 percent, at 1409.84, and the Nasdaq composite index was up 9.67, or 0.40 percent, at 2437.36.

The Labor Department's report on November job creation showed a increase that was slightly better than expected, and it helped diminish nervousness about a drop in the dollar and a consumer confidence reading that was weaker than expected.

Investors have been poring over economic data in recent months, trying to determine whether the health of the economy warrants the run-up in stocks since September. They had been anticipating the jobs report all week as they tried to square their concerns about consumer spending and inflation.

Wall Street wants employment to remain strong so consumers feel emboldened to keep spending through the holidays but also doesn't want wages to rise too quickly and make the inflation-wary Federal Reserve less likely to cut short-term interest rates.

A weak jobs report could have lent support to the notion that the Fed would have to act sooner than expected to lower rates. But the Labor Department found that employers added 132,000 jobs last month, greater than the expected increase of 105,000, and that unemployment ticked up to 4.5 percent from a five-year low of 4.4 percent in October.

3M fell $1, to $78.56, after a Prudential Equity Group analyst lowered his rating.

Bank of America fell 83 cents, to $51.66, on speculation that it might bid for Barclays.

Barclays rose $4.41, to $58.25, a new yearly high.

Citigroup rose $1.14, to $51.85, on rumors the financial conglomerate could be split up.

Heelys, a maker of children's sneakers that have built-in wheels, began trading on the Nasdaq and was up $12.40, at $33.40.