News Friday of slowing employment growth calmed strategists who had been skeptical about a slowdown in the U.S. economy - and it even fueled talk that Federal Reserve policymakers might reverse course and cut interest rates soon.

Charles H. Blood, director of financial market strategies at Brown Brothers, Harriman & Co, boosted his outlook for financial stocks and bonds to "moderately bullish," from "neutral," on Friday after the Labor Department reported that unemployment rose to 4.1% in August, from 4.0%, and the economy shed 105,000 jobs.

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