Jobs data, Europe news send stocks down

A three-day rally on the stock market faded Friday after a mixed jobs report and credit-rating cuts for Italy and Spain.

After a day of choppy trading, the Dow Jones industrial average lost 20 points, following a 468-point surge over the previous three days.

Banks fell more than the broader market as downgrades of Italy and Spain by the Fitch agency renewed concerns about Europe's debt crisis and the fallout it could have on banks.

The Labor Department's closely watched report on unemployment contained mixed news for investors. U.S. employers added 103,000 jobs last month, about double what economists had expected. The government also said more jobs were added in July and August than previously reported. Yet, it offered few signs that strong growth will return soon. The U.S. unemployment rate remained steady at 9.1 percent for the third straight month.

The Dow Jones industrial average dropped 20.21 points, or 0.18 percent, to 11,103.12. The Standard & Poor's 500 index fell 9.51 points, or 0.82 percent, to close at 1,155.46. The Nasdaq composite index fell 27.47, or 1.10 percent, to 2,479.35. -- AP