Markets Subdued Before Jobs Report; Dow Falls 1, Nasdaq Index Off 3, 30-Year Bond Yield Unchanged
The stock market's record-setting advance paused today, pulling most indexes lower as investors waited to see whether Friday's employment report justifies an optimistic outlook on inflation and interest rates.</br></br>The Dow Jones industrial average, which closed at new highs on Tuesday and Wednesday, slipped 1.12 to 5932.85 after trading slightly lower for most of the day.</br></br>The session was characterized as a natural pause in the market's recovery, highlighted by a 750-point rebound in the Dow, from July's decline.</br></br>"Today was a timeout. The market has done well in recent days, so it deserves a rest, and we have this employment report in front of us," said A. Marshall Acuff Jr., market strategist at Smith Barney.</br></br>The monthly employment reading has jolted the financial markets repeatedly this year with indications of rising payroll costs that could prompt manufacturers to raise prices. But many economists expect the September data to provide further evidence that economic growth is slowing enough to keep inflation under control without higher interest rates.