By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks switched between small gains and losses on Friday, with the main benchmarks hovering near record levels in the wake of a solid jobs report.

A key payrolls data showed the economy added 214,000 jobs in October, while the unemployment rate ticked down to 5.8% -- a broadly positive reading. Although the headline number was below the consensus of 243,000, the upward revisions to the previous two months more than made up for it.

The latest jobs data should offer Wall Street investors a confidence-building Goldilocks scenario since the data neither points to a stalling recovery nor one that is overheating.

The S&P 500 (SPX) and Dow Jones Industrial Average (DJI) held broadly steady, and look set to record modest weekly gains.

Meanwhile, the Nasdaq Composite (RIXF) was lower and was on track to finish the week roughly where it started it.

"The [jobs] report is positive. The economy is still adding more than 200,000 jobs a month, but at the same time there is no indication that its overheating as the wage growth remains muted. There is no reason for the Fed to get hawkish," said Brad Sorensen, director of market and sector research at Schwab.

The Bureau of Labor Statistics report showed the U.S. created 214,000 jobs in October, nudging the unemployment rate down a notch to 5.8%, as many companies added workers to gear up for the holiday season. The economy has now added 200,000 workers or more for nine straight months, a feat last accomplished in 1994.

Analysts greeted the report as a positive development, pointing to revisions and other details, such labor participation:

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Fed speakers in the mix: Federal Reserve Chairwoman Janet Yellen and her colleagues continue to prepare the market for an increase in interest rates. In speeches in Paris on Friday, Yellen and New York Fed President William Dudley both said rates are set to go up, and Dudley said that will likely happen next year.

Disney, GAP among shares to watch:Walt Disney Co.(DIS) fell after the company's earnings fell slightly short of expectations, while revenue was a slight beat.

Zynga Inc.(ZNGA) surged after its third-quarter earnings met Wall Street forecasts and sales came in slightly higher.

Sears Holdings Corp.(SHLD) soared after saying it may form a real estate investment trust involving 200 to 300 stores as it seeks to boost its balance sheet.

King Digital Entertainment PLC(KING) rose after the "Candy Crush" creator said third-quarter results topped expectations and announced a stock-buyback plan.

Humana Inc. (HUM) shares fell after the health insurer posted a profit that fell short of forecasts.

Berkshire Hathaway Inc. (BRK/A) (BRKA) reports after the close. (Read more in Movers and Shakers http://www.marketwatch.com/story/berkshire-hathaway-humana-ew-scripps-earnings-in-focus-2014-11-07.)

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In other markets, the dollar (USDJPY) pulled back to Yen114. Oil (CLZ4) rose, but strategists said they don't really expect any gains to last, and support at $77 a barrel is shaky. Europe stocks, meanwhile, fell and were headed to end the week lower. The Nikkei 225 index rose 0.5% to gain 2.8% for the week.

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