US STOCKS-Wall St dips after weak payrolls data

                                
   * U.S. employers unexpectedly cut 85,000 jobs in Dec
                                
 * Jobs should stabilize before stimulus removed-Bullard
                                
 * Dow off 0.2 pct, S&P off 0.1 pct; Nasdaq up 0.2 pct
                                
 * For up-to-the-minute market news, click STXNEWS/US
  (Updates to early morning)
                                
 By Angela Moon
                                
 NEW YORK, Jan 8 (Reuters) - The Dow and the S&P 500 fell on
Friday after an unexpectedly weak employment report cast doubts
on prospects for a quick rebound in the labor market.
                                
 But the technology-heavy Nasdaq erased losses, turning
positive, helped by biotechnology companies.
                                
 The Labor Department said U.S. employers unexpectedly cut
85,000 jobs in December, while economists forecast that
payrolls would be unchanged. The government revised November
data to show the economy added 4,000 jobs rather than lost
11,000, as initially reported. For details, see [ID:nN0747110]
                                
 "It was disappointing, but does not destroy the idea that
the economy is on a recovery track. It just makes the recovery
look a little bit more gradual," said Pierre Ellis, senior
economist at Decision Economics in New York.
                                
 The Dow Jones industrial average <.DJI> was down 24.64
points, or 0.23 percent, at 10,582.22. The Standard & Poor's
500 Index <.SPX> was down 1.23 points, or 0.11 percent, at
1,140.46. The Nasdaq Composite Index <.IXIC> was up 4.17
points, or 0.18 percent, at 2,304.22.
                                
 James Bullard, president of the St. Louis Federal Reserve
Bank, said Friday he would like to see more improvement in the
U.S. job market before the Fed exits some stimulus programs.
[ID:nTOE60709F]
                                
 Financial shares dropped after Citigroup lowered
fourth-quarter earnings views on Goldman Sachs Group Inc
<GS.N>, Morgan Stanley <MS.N> and JPMorgan Chase & Co <JPM.N>,
and said it expects lower revenues from their fixed income,
currency and commodities segments. [ID:nSGE6070EG]
                                
 Goldman Sachs was down 0.9 percent at $176.10, Morgan
Stanley fell 0.6 percent to $32.73, and JPMorgan Chase dropped
0.4 percent to $44.60.
                                
 On the Nasdaq, Genzyme Corp <GENZ.O> rose 3.8 percent to
$53.05 after the biotech company hired industry veteran Ron
Branning to take charge of global quality control.
[ID:nN08239511]
                                
 U.S.-traded shares of Teva Pharmaceutical Industries Ltd
<TEVA.O> advanced 2.5 percent to $58.29 a day after the world's
largest generic drugmaker set a revenue target for 2015 that is
more than than double its current annual amount.
[ID:nN07100602]
                                
 United Parcel Service Inc <UPS.N> gained 5 percent to
$60.25 after the shipping group raised its fourth-quarter
outlook and said it will cut 1,800 management and
administrative jobs. [ID:nN08232945]
  (Reporting by Angela Moon; editing by Jeffrey Benkoe)