Stocks Ended Lower Friday, but Weekly Higher

Stocks ended lower on Friday following a dismal government employment report, but still closed higher for the second week ahead of the widely- anticipated earnings season. The Dow Jones Industrial Average ended down 62.29 points, or 0.49%, to 12,657.2. The S&P 500 fell 9.42 points, or 0.70%, to 1,343.80. The Nasdaq Composite lost 12.85 points, or 0.45%, to 2,859.81. For the week, the Dow average gained 0.6%, the S&P 500 added 0.3% and the Nasdaq Composite rose 1.6%.

The weak June nonfarm payrolls report will spur the Federal Reserve to launch a third round of asset purchases, known as quantitative easing, sometime this fall, said David Blanchflower, a professor at Dartmouth College.

The Federal Reserve said Friday that consumer borrowing rose $5.1 billion in May, the eighth straight monthly increase. It followed a revised gain of $5.7 billion in April. Borrowing in the category that covers credit cards increased, as did borrowing in the category for auto and student loans.

Billionaire investor Warren Buffett said Friday the nation’s employment picture will improve significantly once residential housing construction rebounds. He said the report shows the economy is still a long way off from where it should be, but Buffett remains optimistic about the recovery and sees no danger of a second recession.