U.S. stocks mildly lower at midday on soft jobs report

U.S. stocks reversed early gains to trade modestly lower around midday Thursday as investors were digesting weaker-than-expected jobs data.

At noon, the Dow Jones Industrial Average fell 29.00 points, or 0.16 percent, to 17,728.91. The S&P 500 lost 2.79 points, or 0.13 percent, to 2,074.63. The Nasdaq Composite Index was down 14.43 points, or 0.29 percent, to 4,998.69.

U.S. total nonfarm payroll employment increased by 223,000 in June, missing market consensus of 230,000, and the unemployment rate declined to 5.3 percent, the U.S. Labor Department reported Thursday.

In June, average hourly earnings for all employees on private nonfarm payrolls were unchanged at 24.95 dollars. Over the year, average hourly earnings have risen by 2 percent.

"Aside from the bigger-than-expected drop in the unemployment rate, this report was weaker-than-expected pretty much across the board. And yet, the three-month-average 221k payroll rise through June is pretty good by Federal Reserve standards," said Chris Low, chief economist at FTN Financial, in a note.

In a separate report, the Labor Department announced that in the week ending June 27, the advance figure for seasonally adjusted initial jobless claims was 281,000, an increase of 10,000 from the previous week's unrevised level of 271,000, above market expectations.

Greece remains in focus ahead of Sunday's referendum on the country's bailout terms.

German Chancellor Angela Merkel said Wednesday that there would be no negotiation over a new bailout program to Greece before the country's referendum, though the door for talks remained open.

The U.S. stock markets will be closed Friday for the Independence Day holiday. Endite