A look at the day's business news headlines:
Bank stocks drag markets lower
U.S. stocks came off session lows but ended weaker Friday afternoon after a court ruled against Wells Fargo and US Bancorp in a foreclosure case. The ruling sparked a sell off in bank stocks that rippled through the broader market.
The Dow Jones industrial average ended down 23 points, or 0.2%, with Travelers Companies, JPMorgan Chase sandbank of America leading the decline.
Earlier, the blue chip index had lost 97 points. The S&P 500 finished off 2 points, or 0.2%, and the tech-heavy Nasdaq lost 7 points, or 0.3%. The KBW Bank Index dropped almost 1%.
Investors also reacted to the government's latest reading on the labor market. The U.S. economy added slightly fewer-than-expected jobs in December, but the unemployment rate edged lower than economists had anticipated.
Treasuries pop after jobs report
Treasuries headed higher Friday, as investors looked for a safe haven following a government report showing employers added fewer-than-expected jobs last month.
The government's monthly reading on the labor market showed employers added 103,000 jobs in December, compared to the 150,000 gain that economists surveyed by CNNMoney had expected. Meanwhile, the unemployment rate eased to 9.4%, the lowest level since 2009.
Traders had been bracing for the report all week, and Treasuries got a boost soon after it was released. Uneasiness about the economy tends to lift Treasuries, which are viewed as safe investments and are particularly attractive during times of economic uncertainty.
"The jobs report for a second month in a row is giving investors a little bit of pause in their view that the economy is on fire," said Wan-Chong Kung, a senior fund manager at First American Funds.
– CNNMoney.com reporters Blake Ellis and Hibah Yousuf contributed to this report.