The S&P 500 and Nasdaq also slipped Friday. The S&P 500 dropped nearly 3 %this week, and the Nasdaq lost more than 2%.
Still, both indexes are up over 4% for 2014.
Here's what happened.
Jobs, jobs, jobs: Employers added 209,000 jobs in July. That was well shy of the 288,000 jobs that were created in June and below the gain of 230,000 jobs predicted by economists polled by CNNMoney .
The weaker-than-expected jobs report could ease fears on Wall Street that the Federal Reserve will hike interest rates early next year.
The government said the unemployment rate ticked up to 6.2% from 6.1%.
"The employment data was not too hot, not too cold. It was just about right in terms of what a skittish market was looking for," said Dave Donabedian, chief investment officer at Atlantic Trust, which manages about $25 billion in assets.
In other economic news, a new ISM report showed U.S. manufacturing activity shifted into a higher gear in July. However, a separate report revealed consumer sentiment dipped in July to the lowest level since March.
On the other hand, shares of LinkedIn(LNKD, Tech30) popped 12% after the social media company posted better-than-expected quarterly results. Expedia(EXPE) traveled 6% higher on upbeat earnings and a 29% jump in bookings.
Tesla(TSLA) also drove 4% higher ding after Elon Musk's electric car maker reported strong sales and a profit that topped forecasts.
Bally Technologies(BYI) hit the jackpot as Scientific Games(SGMS) agreed to acquire the slot machine maker for $3.3 billion. Bally spiked 30% on the buyout, which also sent Scientific Games climbing 3%.