August 06, 2006	Sunday	Rajab 10, 1427

NEW YORK, Aug 5: US shares ended marginally lower on Friday on profit-taking after a government report issued ahead of a crunch Federal Reserve meeting next week revealed tepid job growth in July.

The Dow Jones Industrial Average closed down a slight 2.24 points (0.02 per cent) at 11,240.35, while the technology-stacked Nasdaq index ended 7.29 points (0.35 per cent) lower at 2,085.05.

The Standard and Poor's 500 broad-market index was also barely changed at 1,279.36, down 0.91 points (0.07 per cent).

Wall Street had opened higher after the government reported non-farm payrolls rose by just 113,000 new positions last month, much slower than a Wall Street forecast of 145,000 jobs.

Traders pushed up the market in the belief the report would pressure the Fed to put its rate hike campaign on pause when it meets on Tuesday. After 17 consecutive hikes, the fed funds rate is currently pegged at 5.25 per cent.

However, profit-taking and nervousness about whether the Fed would actually pause or unleash another rate hike depressed the market in late afternoon trading.

The surprise could be no pause. That could still happen, said SW Bach analyst Peter Cardillo.

If you look at the employment numbers, obviously they were weaker than expected but you have also to take into consideration that wage pressures were higher and that means there is inflation out there, he said.

Ahead of the Fed meeting, the yield on the benchmark 10-year Treasury note declined to 4.903 per cent from 4.951 per cent late Thursday, while that on the 30-year bond fell to 4.996 per cent from 5.035.

Oil prices, meanwhile, eased on the back of the job numbers on the perception that slower economic growth could cool America's voracious demand for energy.

The benchmark New York oil futures contract closed down 70 cents at $74.76 a barrel.

Defying the wider market, Ford Motor closed up 27 cents, or 3.9 per cent, at 7.13 dollars.

The company announced this week that its second-quarter loss was more than double an initial estimate, deepening to $254 million on mounting pension costs.

But at the same time, Ford announced the appointment of veteran Goldman Sachs banker Kenneth Leet as a strategic advisor to its board, prompting hopes among investors that the ailing auto giant will spin off some units.

Shares in drinks giants Coca-Cola and Pepsico were mixed after an Indian state on Friday banned the sale of soft drinks, following a court order for the companies to reveal the ingredients of their fizzy products.

Federal MPs in India have demanded a nationwide ban on Pepsi and Coke after the privately-funded Centre for Science and Environment said 11 drinks sold by the two US companies contained unacceptable levels of pesticides.

Coca-Cola ended down 17 cents, or 0.4 per cent, at $43.85 while Pepsico closed up 33 cents, or 0.5 per cent, at $63.17.

Both companies insisted that their drinks are safe.

In more than 200 countries around the world Coca-Cola products comply with local and international beverage standards, Coca-Cola said in a statement.

Pepsico International spokesman Dick Detwiler said: The fact of the matter is that our products in India are made in strict accordance with local and international standards, just as they are everywhere else in the world.Banking giant Citigroup closed three cents higher at 48.50 dollars while American Airlines' parent AMR finished down 11 cents at $21.90. ---AFP