Another dramatic plunge today sending the Dow down 170 points, this time again proving (as almost always) that no one on Wall Street knows anything.  As was reported yesterday, the big rally was due to expectation from investors that the December employment numbers would be up to 240,000, a substantial jump from the   more usual averages of 200,000 in previous months.  So you'd think that today's super-positive numbers would have sent the market up again.  Not only did the December numbers come in even higher than 240 (252 to be exact) but the October and November numbers were adjusted significantly upwards to 353,000 bringing the jobless rate to a 6-1/2 year low of 5.6%.  But the market went down anyway because it was also reported that average wages had fallen by 5 cents/hour and that the low jobless rate was due at least in part to a number of jobless giving up the search and therefore no longer being counted.  (Uh, ... duh ... didn't we already know that?  And, of course, the unemployment rate will go up again once these workers decide to get back into an improving economy, which will be good news, not bad.)  Also after two days of slight increases, oil continued to decline today, once again adding to investor concerns that we haven't seen the bottom yet.  All in all, a pretty illogical reaction to a day of mostly good news; but could we really have expected differently?  At 6.3 billion shares, volume was below recent averages but closer to alignment with 2014 averages.

Wall St. retreats after two-day advance; jobs data mixed

BY CAROLINE VALETKEVITCH

DJ:  17,737.37  -170.50        NAS:  4,704.07  -32.12     S&P:    2,044.81  -17.33

NEW YORK Fri Jan 9, 2015 4:51pm EST

(Reuters) - U.S. stocks fell on Friday following a two-day rally as December's jobs report gave a mixed view of the economy, with financial shares leading the way lower.

All three major indexes posted slight losses for the week and fell back into negative territory for 2015.

U.S. nonfarm payrolls rose in December, topping Wall Street expectations, but wages unexpectedly fell.

"There was this tale of two cities, with very strong job gains but on the flip side a continued real moderation in wage growth. I think the market looked at that and was sort of confused about what that means," said Burt White, chief investment officer for LPL Financial in Boston.

"I actually think it's the best-case scenario. It showcases the U.S. economy is continuing to grow and repair the labor market, but at the same time, the muted wage growth means the Fed's going to stay lower for longer."

Fourth-quarter results from S&P 500 companies pick up next week, including JPMorgan Chase & Co (JPM.N) and Wells Fargo (WFC.N). Both were among the biggest drags Friday, with JPMorgan down 1.7 percent at $59.34 and Wells Fargo down 1.6 percent at $52.68. The S&P financial index .SPSY lost 1.3 percent, the day's worst-performing major sector.

The Dow Jones industrial average .DJI fell 170.5 points, or 0.95 percent, to 17,737.37, the S&P 500 .SPX lost 17.33 points, or 0.84 percent, to 2,044.81 and the Nasdaq Composite .IXIC dropped 32.12 points, or 0.68 percent, to 4,704.07.

Friday's decline followed two days of more than 1 percent gains for the market, a rally fueled in part by minutes from the last Federal Reserve meeting, which reassured investors the central bank was in no hurry to start raising interest rates.

For the week, the Dow and Nasdaq were down 0.5 percent, while the S&P 500 lost 0.6 percent.

Oil prices resumed their slide after two days of relative calm, with Brent LCOc1 and U.S. crude CLc1 lowest since April 2009 on persistent worry over a supply glut. The S&P energy sector .SPNY fell 0.8 percent.

A number of retail shares fell after reporting December sales and providing forecasts. The S&P retail index .SPXRT ended down 1.7 percent.

Bed, Bath & Beyond (BBBY.O) dropped 6.7 percent to $74.09 and was among the S&P500's biggest percentage decliners after the retailer forecast fourth-quarter earnings at the low end of expectations.

Macy's (M.N) shares fell 2.8 percent to $65.92 a day after it said it would close 14 stores and cut some jobs.

About 6.3 billion shares changed hands on U.S. exchanges, below the 7.1 billion average for the last five sessions, according to BATS Global Markets.

NYSE decliners outnumbered advancers 1,916 to 1,139, for a 1.68-to-1 ratio; on the Nasdaq, 1,811 issues fell and 927 advanced, for a 1.95-to-1 ratio.

The S&P 500 posted 43 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 75 new highs and 45 lows.