Nov. 6 (Bloomberg) -- Brazil’s Bovespa index fell for the first time in four days as a jump in the U.S. unemployment rate hurt the export outlook for commodity producers, overshadowing a surge in profits at Lojas Americanas SA and Gafisa SA.

Gerdau SA, which about gets 40 percent of revenue from North America, led declines for steelmakers after the U.S. jobless rate exceeded 10 percent for the first time since 1983. Vale SA, the world’s biggest metal producer, slid 0.7 percent. Lojas Americanas, Brazil’s biggest discount retailer, and Gafisa, the second-largest homebuilder, rallied at least 1 percent after third-quarter earnings exceeded analyst estimates.

“The underlying story for Brazil is still good in terms of the domestic economic fundamentals,” said Alexander Kazan, vice president for Latin America equities at Auerbach Grayson & Co., a New York-based brokerage. “But in an environment where investors are concerned about the durability of the global economic recovery Brazilian stocks are still likely to suffer.”

The Bovespa index slid 0.5 percent to 64,466.13, trimming this week’s gain to 4.8 percent. The BM&FBovespa Small Cap Index increased 0.4 percent today. The real slipped 0.2 percent to 1.7202 per U.S. dollar.

In other Latin American markets, Mexico’s Bolsa gained 0.5 percent and Chile’s Ipsa advanced 0.4 percent. The MSCI Emerging-Markets Index rose 0.6 percent.

U.S. payrolls fell by 190,000 workers last month, compared with a 175,000 drop anticipated by the median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed. The jobless rate jumped to a 26-year high of 10.2 percent, greater than the 9.9 percent economists estimated.

‘Risk Aversion’

“The fact that it jumped above 10 percent is causing some risk aversion and that’s why we’re seeing some fund flow into the U.S. dollar,” said Roberto Lampl, a fund manager in The Hague for ING Investment Management, which oversees about $12 billion. “There’s been a clear correlation between weakening dollar and strength in the Latin American equity markets and this is maybe an excuse for people to take some profits.”

Gerdau fell 2.7 percent to 27.30 reais. Vale retreated 29 centavos to 41.61 reais.

Lojas Americanas climbed 7.3 percent to 12.95 reais for the biggest gain in the Bovespa. Consolidated profit rose to 36.5 million reais ($21.2 million) from 6.7 million reais a year earlier, beating the 18.5 million-real average estimate of seven analysts surveyed by Bloomberg. Raymond James & Associates Inc. raised the shares to “strong buy.”

The company’s unit B2W Cia. Global de Varejo, the nation’s biggest online retailer, fell 5 percent, the most in the Bovespa, after third-quarter profit trailed analysts estimates.

Gafisa Earnings

Gafisa rose 1 percent to 27.80 reais. Brazil’s second- biggest homebuilder by assets posted a third-quarter profit of 63.7 million reais, compared with 14.5 million a year earlier. Adjusted net income more than doubled to 88.6 million reais, beating the 72.6 million average estimate of six analysts surveyed by Bloomberg.

The Bovespa, up 72 percent this year, rallied this week as profit reports from Cia. Siderurgica Nacional SA to Vivo Participacoes SA beat analyst estimates. Vivo gained 13 percent this week.

The index last week declined as much as 11 percent from its peak, a so-called correction, after the government imposed a 2 percent tax on foreigners’ purchase of stocks and bonds to reduced gains in the real.

Brazil’s real, the best performing major currency against the dollar this year, headed for its first weekly gain in three.

The real has benefited from “an overall risk-positive week,” said Greg Anderson, a New York-based currency strateg at Societe Generale. The dollar has weakened against major currencies and investors are reluctant to sell Brazilian ass because they would have to pay the so-called IOF tax if they reenter the country’s markets, he said.

Mexico Stocks

The Bolsa posted its first weekly gain in three weeks.

Desarrolladora Homex SAB gained the most on the index, adding 3.8 percent to 74.83 pesos. Mexico’s largest homebuilder will ask shareholders to approve selling 5 percent to 6 percent of ordinary shares in a global equity sale.

“The issue wasn’t as big as expected,” said Gerardo Roman, head of trading at Mexico City-based Actinver SA. “Dilution is minimal.”

Banco Compartamos SAB added 3.3 percent to 61 pesos. The Mexican bank that lends to low-income consumers was raised to “buy” from “hold” at Citigroup Inc., which said its results should have a “positive effect” on the shares.

To contact the reporters responsible for this story: James Attwood in Santiago at Jattwood3@bloomberg.net; Emily Schmall in Mexico City at Eschmall@bloomberg.net.

Last Updated: November 6, 2009 16:16 EST