Stocks dip at the start

NEW YORK (CNNMoney.com) -- Stocks moved narrowly lower at the start of Friday's session, as Wall Street weighed a weak July jobs report while keeping a close eye on the troubled mortgage sector.

The Dow Jones industrial average (down 6.18 to 13,457.15, Charts) fell 0.2 percent in early trading.

The broader S&P 500 (down 0.17 to 1,472.03, Charts) declined about 0.2 percent, while the Nasdaq Composite index (down 2.60 to 2,573.38, Charts) lost 0.4 percent.

The big news of the morning was the government's employment report for July, which revealed that U.S. employers added 92,000 jobs in July, falling short of forecasts and marking the slowest pace since February.The unemployment rate came in slightly higher than expected at 4.6 percent.

Stocks have advanced in the past two sessions despite a chill in the credit markets and problems hitting mortgage lenders. There was some more bad news on that front to greet investors Friday morning.

American Home Mortgage said it would shut down and cut nearly 7,000 jobs after lenders had cut off credit.

The CEO of IndyMac Bancorp (down $0.75 to $20.30, Charts), which provides mortgage products, said late Thursday that it had to make changes in its pricing and underwriting guidelines, saying that the recent shakeup in the mortgage market is more serious than previous disruptions.

Shares of Accredited Home Lenders (up $0.88 to $6.19, Charts) rebounded after a steep selloff a day earlier, on news that it will attempt to complete its buyout by the private equity firm Lone Star. On Thursday, the company said it was not certain it would continue to operate because of adverse conditions of the subprime mortgage market.

Consumer products maker Procter & Gamble (down $0.30 to $63.00, Charts, Fortune 500) reported better-than-expected quarterly results, but warned that its earnings for fiscal 2008 would fall short of Wall Street expectations.

The No. 1 automaker Toyota Motor (up $1.21 to $119.80, Charts) reported better than expected profits after the close of trading in Tokyo.

On the corporate front, Take-Two Interactive Software (down $1.91 to $15.00, Charts) warned after the bell Thursday that it would delay its most important upcoming video game, "Grand Theft Auto IV", and that it would post a full-year loss. Shares plunged almost 19 percent in after-hours trading.

Oil prices fell in early trading, as the price of U.S. light crude lost 29 cents to $76.57 a barrel in electronic trading.

Treasury prices were higher in early trading after the jobs report, taking the yield on the 10-year note to 4.74 percent from the 4.77 percent level reached late Thursday.

Overseas, European stocks rose in morning trading. Asian markets finished the session mostly higher.

The dollar fell against the euro and was higher versus the yen.