US Stocks end mostly lower despite upbeat jobs report (ext)

NEW YORK (CNNMoney) -- U.S. stocks ended mostly lower Friday as worries about Europe's debt crisis dampened enthusiasm over a better-than-expected report on U.S. payrolls.

The Dow Jones industrial average (INDU) fell 56 points, or 0.4%, to end at 12,360. The S&P 500 (SPX) shed 3 points, or 0.2%, to 1,278. The Nasdaq (COMP) edged up 4 points, or 0.1%, to 2,674.

While Friday's big jobs report beat expectations, some analysts said it was skewed by seasonal factors. Others said the response was muted because investors were anticipating a big gain.

"The news is good," said Richard Cripps, chief market strategist for St. Louis-based broker Stifel Nicolaus. "But we're not seeing any conviction in either selling or buying."

In any event, traders said the market remains stymied by worries about government debt and banking problems in Europe.

U.S. bank stocks had rallied late Thursday as speculation mounted about a government refinancing program for troubled homeowners.

"This continues to be a headline-driven market, and it can change in a heartbeat," said Ted Weisberg, president of Seaport Securities. "That's reflected in the lack of confidence and low trading volumes because investors are skeptical."

The dollar rose against the euro, the British pound and the Japanese yen.

Oil for February delivery lost 53 cents to $101.28 a barrel.

Gold futures for February delivery fell $3.30 to $1,616.80 an ounce.