North American markets are likely to weaken Friday morning, as investors digest a weaker-than-expected U.S. employment report but cheer GE’s solid earnings results.

The job news was better north of the 49th parallel as Canada’s unemployment rate edged down to 7.1% in September – the lowest rate in more than three years – as the country generated a better-than-expected 43,200 new jobs, Statistics Canada reported today.

Economists had been forecasting job growth of 20,000 or less. September’s job creation followed two relatively static months of employment.

South of the border U.S. employers created 96,000 new jobs in September, a weaker rate of hiring than economists expected. The U.S. unemployment rate held steady at 5.4%, the Labor Department said.

In this morning’s earnings news, General Electric’s third-quarter net income rose 11% despite about US$300 million of hurricane-related insurance losses and another quarter of declining revenue and profit for the energy segment.

Forzani Group Ltd., Canada’s largest retailer of sporting goods, is slashing its full-year profit forecast after a disappointing back-to-school sales season.

Asian stock markets closed lower overnight. Tokyo’s Nikkei fell 5.24 pointsat 11,349.35 points. In Hong Kong, the key Hang Seng Index fell 80.27 points or 0.6% to 13,241.46.

Toronto stocks fell Thursday as the price of oil touched US$53 a barrel in intra-day trading. The S&P/TSX composite index dropped 46.55 points or 0.52% to close at 8,825.38 on volume of 298 million shares.

A barrel of crude oil settled at US$52.67, up 65¢, on the New York Mercantile Exchange.

The junior S&P/TSX Venture composite index was the only market gauge to end higher. It rose 7.28 points to 1,677.19.

In New York, disappointing retail sales and rising oil prices sent stocks lower. Rising gasoline prices slowed U.S. retail sales in September, usually a robust month for shoppers.

The blue-chip Dow Jones industrial average fell 114.52 points or 1.1% to 10,125.40.

Broader stock indicators were also sharply lower. The S&P 500 was down 11.40 or 1% at 1,130.65, and the tech-heavy Nasdaq composite index lost 22.51 or 1.1% to 1,948.52.