An encouraging October jobs report gave shares an early bump on Friday but the gains were all quickly lost and the main indices ended in the red, as caution grew ahead of next Tuesday’s election.

Although the jobless rate ticked up to 7.9 per cent, the fact that the economy could pump out 171,000 net new jobs last month was seen as good for President Barack Obama and a negative for challenger Mitt Romney, the Wall Street favourite.

The markets also were pulled down by Apple’s 3.3 per cent fall, amid a lukewarm reception for its new iPad mini.

At the closing bell the Dow Jones Industrial Average was down 109.65 points (0.83 per cent) at 13,122.97.

The broad-based S&P 500 fell 13.39 (0.94 per cent) to 1,414.20, and the Nasdaq Composite lost 37.93 (1.26 per cent) at 2,982.13.