* Payrolls better than expected, double-dip fears ease
* Financial, tech shares lead advance as risk returns
* Dow edges back into the black for the year
* Dow up 1.1 pct, S&P up 1.1 pct, Nasdaq up 1.3 pct
* For up-to-the-minute market news see []
(Updates to late afternoon, changes byline)
By Rodrigo Campos
NEW YORK, Sept 3 (Reuters) - Wall Street was set to close
its best week in six on Friday after economic data, including a
stronger-than-expected labor market report, helped soothe fears
the economy could fall back into recession.
The S&P 500 has gained more than 5 percent in the last four
days. Treasury debt prices have fallen, while the U.S. dollar
dipped as investors moved out of safe havens.
Sectors sensitive to economic swings like technology and
financials have led the week's gains in equities. On Friday,
the S&P financial sector index <.GSPF> rose 1.9 percent with
Janus Capital <JNS.N> up 6.4 percent at $10.10 and Goldman
Sachs <GS.N> up 5.5 percent at $147.48.
U.S. payrolls fell for a third straight month in August,
the Labor Department said, but the loss of 54,000 non-farm jobs
was far less than the 100,000 expected by economists polled by
Reuters, and private hiring surprised on the upside.
"Equity markets had priced in the non-trivial probability
of a double dip, and what you're seeing is that fear pricing is
coming out," said Mike Dueker, head of economics at Russell
Investments in Tacoma, Washington.
"Recovery will be slow, but at least reliable, and that
should add some tailwinds (for stocks) the rest of the year."
The Dow Jones industrial average <> gained 111.11
points, or 1.08 percent, to 10,431.21, edging back into the
black for the year. The Standard & Poor's 500 Index <.SPX> rose
12.12 points, or 1.11 percent, to 1,102.22. The Nasdaq
Composite Index <> added 28.81 points, or 1.31 percent, to
2,228.82.
The S&P traded above 1,100 for the first time since Aug. 11
and its Bollinger bands chart shows the benchmark clearly above
its 20-day moving average. That makes the upper band, now at
1,123, a short-term target.
The move higher faces strong resistance, with the 200-day
moving average at 1,116. Chartists point to 1,130 as key
resistance, tested in June and early August, with both failures
generating steep declines.
The S&P has risen 3.5 percent so far this week but is still
down about 10 percent from its 2010 high set in late April.
Stocks sold off sharply in August on concerns the U.S.
economy could be headed for a double-dip recession. But a
report that showed the manufacturing sector grew more than
expected last month sparked a rally on Wednesday that drove
stocks up to mark their best day in eight weeks.
There was some support on the corporate front. Take-Two
Interactive Inc <TTWO.O> shot up 8.6 percent to $9.61 a day
after the video game maker's quarterly profit smashed Wall
Street's expectations of a loss, and it raised its forecast.
Technology stocks have outperformed the market this week.
The PHLX semiconductor index <.SOX> has gained 6.6 percent in
the past three days, its best such run since mid-June.
On the downside, Campbell Soup Co <CPB.N> dropped 3.2
percent to $36.14 after posting lower-than-expected quarterly
sales and forecasting growth below its long-term target as it
grapples with a weak economy. [].
(Reporting by Rodrigo Campos; Additional reporting by Edward
Krudy; Editing by Jan Paschal)
