U.S. stocks fall after disappointing jobs data; Dow Jones down 0.43%

U.S. stocks opened lower on Friday, after the release of U.S. nonfarm payrolls and umemployment data painted a mixed picture of the strength of the U.S. job market's recovery. 

During early U.S. trade, the Dow Jones Industrial Average declined 0.43%, the S&P 500 index shed 0.33%, while the Nasdaq Composite index edged down 0.12%. 

The Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month. 

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June. 

The report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program. 

American International Group soared 4.25% after the insurer, that repaid a U.S. bailout last year, declared its first dividend since the rescue and authorized the repurchase of USD1 billion in stock after profit climbed 17%. 

LinkedIn added to gains, rallying 8.83%, even as the online professional-networking service issued, after the closing bell on Thursday, a revenue forecast for the current period of USD367 million to USD373 million, trailing analysts' average estimate. 

On the downside, Bank of America retreated 0.74%, after saying federal and state agencies plan to press more civil claims tied to mortgage and debt offerings. The U.S. lender will therefore face another round of legal battles tied to home loans and underwriting. 

Fellow U.S. lenders Citigroup and JP Morgan were also trading lower, sliding 0.59% and 0.74% respectively. 

In earnings news, Chevron plummeted 2% after reporting a 26% decline in net income due to lower oil prices and maintenance work at its U.S. refineries. 

Viacom, on the other hand, soared 6.04% after reporting a 14% rise in revenue, thanks to strong advertising and affiliate fees at its cable networks. 

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 edged up 0.07%, France’s CAC 40 slipped 0.11%, Germany's DAX fell 0.22%, while Britain's FTSE 100 retreated 0.59%. 

During the Asian trading session, Hong Kong's Hang Seng Index gained 0.46%, while Japan’s Nikkei 225 Index surged 3.29%. 

Later in the day, the U.S. was to release a report on factory orders