Markets closed lower Friday as a heightened terror alert from the U.S. government gave traders another reason to close out positions. The S&P/TSX composite index dropped 11.51 points to 6,477.74.

Overall, eight of the 13 TSX sector groups finished the session lower.

Investors pretty much ignored the Canada and U.S. January employment reports released this morning.

The Canadian economy lost 2,100 jobs in January, the first loss in more than a year, but it was within analysts’ expectations. Meanwhile, an unexpectedly upbeat U.S. report showed the economy created jobs in January at the fastest rate in more than two years .

One of the day’s few winners was Biovail. Shares in the company rose $4.43 to $47.48 after it announced the U.S. Food And Drug Administration had approved its Cardizem drug.

The TSX health care group rose 3% on Biovail’s news.

Air Canada shares continued to fall, sinking 42¢ to $2.65, following Thursday’s bigger-than-expected loss.

In earnings news, Loblaw reported a 22% jump in fourth quarter profit. Its shares rose 95¢ to $54.25.

Dofasco reported a $56.5 million fourth quarter. Its shares fell 38¢ to $27.35.

In other business news, BCE shares fell 21¢ to $28.26, after it announced it would take the Sympatico Internet portal entirely under its wing and reduce its stake in Bell Globemedia.

Rogers Communications shares fell 64¢ to $16.14. Rogers Cable chief executive John Tory announced he will quit to run for the mayor’s job in Toronto. Tory will be replaced by Ed Rogers, son of Rogers Communications CEO Ted Rogers.

The TSX Venture Exchange edged up 2.60 to 1,117.17.

In New York, U.S. markets fell for the fourth week in a row, as war fears and terror alerts overwhelmed a relatively upbeat U.S. employment report.

The Dow Jones industrial average dropped 65.07 points to close at 7,864.23. The Nasdaq composite index fell 19.26 points to 1,282.47. The S&P 500 dipped 8.46 to 829.69

The Canadian dollar declined US0.15¢ to US65.76¢ as the American dollar regained strength globally.