NEW YORK — Stocks closed little-changed Thursday on another disappointing jobs report and growing concern over an investigation of banks’ foreclosure practices. But the market made up earlier losses as investors anticipated that the Federal Reserve will take steps soon to strengthen the economy.
Bank and other financial stocks were pummeled as more companies suspended foreclosures on homes while taking steps to confirm that they have fully complied with the law. In a move that effectively froze the market for foreclosed homes, the attorneys general of all 50 states announced Wednesday that they are planning to investigate whether banks took all of the appropriate steps before foreclosing on hundreds of thousands of homes.
Shares of Bank of America Corp., Wells Fargo & Co., Citigroup Inc. and JPMorgan Chase & Co. fell between 2 percent and 5 percent. By comparison, the Standard & Poor’s 500 index fell less than 1 percent.
After the market closed, Internet-search giant Google Inc. announced that it earned almost a dollar per share more than analysts were expecting. That pushed the stock up 9 percent to $590 in after-hours trading. Given that Google is seen as a barometer of the tech industry, the market could see buying resume today.
The Dow ended the day down 1.51, or less than 0.01 percent, at 1,1094.57, after falling as much as 70 in the morning. The Standard & Poor’s 500 index fell 4.29, or 0.36 percent, to 1,173.81. The Nasdaq composite index fell 5.85, or 0.2 percent, to 2,435.38.
The Fed’s next meeting on its monetary policy ends Nov. 3, and it is widely expected the central bank will announce actions to stimulate the economy.
That expectation also helped push the dollar lower and gold higher. The Fed is expected to buy government bonds, which would drive interest rates down.
Gold touched a record of $1,388.10 an ounce before pulling back to $1,373.25.
