TORONTO - North American stock markets closed lower Friday after a weak showing in the latest U.S. jobs and factory order data, while gold stocks also took a hit even as the price of bullion increased.

The S&P/TSX composite index was off 98.36 points at 11,196.06 in its first day of trading following the Canada Day holiday Thursday when Canadian markets were closed. The TSX, for the week, tumbled more than four per cent.

The TSX Venture Exchange lost 30.94 points Friday to 1,384.95.

The Canadian dollar was at 94.13 cents US, up 0.2 of a cent from Wednesday's close. The Bank of Canada did not monitor electronic trading on the holiday.

The U.S. Labour Department reported that the unemployment rate fell to 9.5 per cent in June, its lowest level in nearly a year. The jobs survey is influential on stock markets as it provides insight into how well the world's largest economy is faring in its attempt to recover from the recession.

"This (jobs report) is a bit of reprieve, perhaps, because it's better than expected," said Patricia Croft, chief economist, RBC Global Management.

"But still, a massive challenge faces the U.S. in regards to the employment situation and I think this does nothing to resolve the issue of (whether) we're headed for a double dip on the markets or not."

That's because the jobs data showed that while private employers added 83,000 jobs last month, it was fewer than the 112,000 analysts had forecast.

Meanwhile, TSX gold stocks slipped 4.7 per cent in a delayed reaction to a US$39.20 an ounce tumble in the August gold contract when Canadian markets were closed.

On Friday, the August bullion contract in New York rose $1 to close at US$1,207.70 an ounce, but still down four per cent for the week. Barrick Gold Corp. (TSX:ABX) fell $2.37 to C$45.95.

Metals and mining stocks were up 0.2 per cent despite a retreat by the Australian government from a planned 40 per cent tax on booming profits in the mining industry.

Mining companies had campaigned mightily against the proposed tax and it was a key factor in the sudden ouster of Kevin Rudd as prime minister after he refused to negotiate. Friday's announcement from new Prime Minister Julia Gillard effectively removed the issue from the political agenda.

The energy sector was down 0.3 per cent as the August crude contract on the New York Mercantile Exchange slipped 81 cents to end at US$72.14 a barrel.

Also, the U.S. Commerce Department said orders for manufactured goods decreased by 1.4 per cent in May, the biggest drop since March 2009 when major stock indexes hit a 12-year low.

New York's Dow Jones industrial average slipped 46.05 points to 9,686.48. The Nasdaq composite index lost 9.57 points to 2,091.79, while the S&P 500 index was down 4.79 points at 1,022.58.

Trading was light ahead of the long U.S. Independence Day weekend. U.S. markets are closed Monday.

In Canadian corporate news, Atlantic Power Corp. (TSX:ATP) said it will buy a 27 per cent interest in Idaho Wind Partners 1, which owns 11 wind farms in Idaho, for $40 million. Its shares were down 12 cents at $12.26.

Alternative fuel technology company Westport Innovations Inc. (TSX:WPT) said Friday it has acquired OMVL SpA of Italy and its 51 per cent share of Juniper Engines Inc. in a deal expected to cost US$23.4 million. Westport shares lost two cents to $16.73.

Linamar Corp. (TSX:LNR) has spent $29.4 million to increase its stake in Linamar Hungary NYRT to 99 per cent. Its shares fell five per cent, down 52 cents to $17.48.

Lions Gate Entertainment Corp. (NYSE:LGF) has adopted a shareholder rights plan or "poison pill" to fend off unwanted takeovers, a day after billionaire activist investor Carl Icahn disclosed he owns about 33.9 per cent of the film producer and distributor's stock.