* Dow down 1.1 pct, S&P 500 off 0.9 pct, Nasdaq off 1.3 pct
* U.S. employers hire more in October than expected
* Energy lags, Chevron drags Dow lower
* Starbucks raises outlook, U.S. sales beat expectations
By Chuck Mikolajczak
NEW YORK, Nov 2 U.S. stocks ended an unusual
storm-shortened trading week with a selloff on Friday, as major
indexes erased early gains sparked by a stronger-than-expected
Energy stocks were a drag on the market after Chevron Corp
, the second-largest U.S. oil company, posted a profit
that missed expectations. The stock fell 2.9 percent to $108.26
and was one of the biggest drags on the Dow industrials.
The dollar's strength also hurt energy and materials shares.
Eventually, all 10 S&P 500 sectors succumbed to selling pressure
to end lower.
For the week, the Dow shed 0.1 percent, but the S&P 500
gained 0.2 percent. The Nasdaq ended the week down 0.2 percent.
The trading week was shortened by a historic two-day market
closure on Monday and Tuesday, spurred by superstorm Sandy's
devastating sweep through the U.S. Northeast.
"We started off on strength, with nonfarm payrolls coming in
above expectations. Then we drifted lower during the day. It's
hard to determine what direction we are in - with the two days
off, it's really been a strange week," said Fred Dickson, chief
market strategist at D.A. Davidson & Co, in Lake Oswego, Oregon.
From New York City's Staten Island to the popular beach
towns of the Jersey Shore, rescuers and officials continued on
Friday to face widespread destruction wrought by Sandy, as well
as a rising death toll and frustration over delayed relief and
Government data showed employers added 171,000 people to
their payrolls last month, topping expectations. The jobless
rate ticked up to 7.9 percent as more workers restarted job
searches, a positive signal for the economy.
The jobs report is the last one before the U.S. presidential
election on Tuesday, and it could improve President Barack
Obama's odds at the ballot box, though polls continue to
indicate a close race between Obama and Republican candidate
Chevron also was the second-largest weight on the S&P 500.
The S&P energy index, down 1.7 percent, was one of the
worst performers among the 10 major S&P 500 sector indexes.
Strength in the dollar was also cited for a decline in crude
prices, which hurt energy shares as well.
The S&P materials index fell 2 percent, pulled lower
by a slide of 8.4 percent in Newmont Mining Corp to
$48.74 after its profits missed expectations.
According to Thomson Reuters data through Friday, of the 378
companies in the S&P 500 that have reported earnings so far,
61.9 percent have topped expectations, in line with the 62
percent quarterly average since 1994.
The revenue picture is much bleaker, with only 38.2 percent
of companies having posted revenue above expectations, well
below the 62 percent quarterly average since 2002 and the 55
percent average over the past four quarters.
"Generally, we've seen the market trend lower, primarily
related to disappointing revenue reports coming out of the
third-quarter earnings stream," Dickson said.
The Dow Jones industrial average dropped 139.46
points, or 1.05 percent, to 13,093.16. The Standard & Poor's 500
Index lost 13.39 points, or 0.94 percent, to 1,414.20.
The Nasdaq Composite Index declined 37.93 points, or
1.26 percent, to close at 2,982.13.
The S&P 500 index is down 3.5 percent from a recent peak on
Sept. 14, and is below its 50-day moving average, amid investor
caution ahead of the election and tough government budget
negotiations at the end of the year.
Starbucks Corp jumped 9.1 percent to $50.84 after
raising its profit forecast for the fiscal year as sales in the
United States, its top market, beat expectations, providing the
company optimism that has eluded much of the U.S. restaurant
industry in recent months.
Restoration Hardware shares soared 29.6 percent to
$31.10 in their market debut after the upscale furniture
retailer's initial public offering was priced at the high end of
the expected range. The shares hit an intraday high at $33.15 -
up 38.1 percent from the IPO price of $24.
Verizon said it expected fourth-quarter results to be
hurt significantly due to superstorm Sandy, but could not
estimate the effect at this time. The stock slid 1.4 percent
Volume was modest, with about 6.35 billion shares traded on
the New York Stock Exchange, NYSE MKT and Nasdaq, slightly below
the daily average of 6.5 billion for the year so far.
Declining stocks outnumbered advancing ones on the NYSE by a
ratio of 7 to 3, while on the Nasdaq, about three stocks fell
for every one that rose.