RPT-US STOCKS-Market rises on energy shares, economy hopes

                                
 (Repeats to fix link to related story in 10th paragraph)
                                
 (Updates to midday, changes byline)
                                
 By Cal Mankowski
                                
 NEW YORK, April 4 (Reuters) - U.S. stocks rose on Friday as
energy shares gained on higher crude oil prices and investors
bet that a report showing an unexpectedly large drop in March
payrolls could keep the Federal Reserve on track to revive a
sputtering economy.
                                
 For the week, the market was poised to post strong gains,
with the Nasdaq on track for its best weekly gain in nearly
five years.
                                
 Shares of industrial companies, which are sensitive to the
economy's cycles, also advanced, including heavy equipment
maker Caterpillar Inc <CAT.N>, up 1.6 percent to $78.31.
                                
 Data from the Labor Department showed a third month of
nonfarm job losses and, adding to the bleak picture, showed
that job losses in January and February were greater than
previously estimated. For more see [ID:nN04420853].
                                
 "The fact that we lost jobs suggests that the Fed is going
to be cutting rates further, leading to a very strong recovery
in the second half of the year," said Peter Jankovskis,
director of research at OakBrook Investments LLC in Lisle,
Illinois.
                                
 The Dow Jones industrial average <.DJI> rose 47.46 points,
or 0.38 percent, to 12,673.49. The Standard & Poor's 500 Index
<.SPX> was up 9.57 points, or 0.70 percent, at 1,378.88. The
Nasdaq Composite Index <.IXIC> was up 22.68 points, or 0.96
percent, at 2,385.98.
                                
 The Labor Department on Friday said the unemployment rate
jumped to a two-and-a-half-year high of 5.1 percent, further
evidence that a housing downturn and credit crisis may have
pushed the economy into recession.
                                
 Since mid-September, the Fed has cut short-term interest
rates from 5.25 percent to 2.25 percent. Fed Chairman Ben
Bernanke said this week that a recession in the first half of
2008 is possible but the economy should pick up later in this
year.
                                
 Shares of Exxon Mobil Corp <XOM.N> on Friday rose 1.4
percent to $89.45, as oil <CLc1> gained $1.70 to $105.53. Oil
futures gained as the dollar weakened.
                                
 For-profit education companies gained on expectations that
Congress will approve proposals to increase funding for student
loans. Shares of Corinthian Colleges <COCO.O>, Career Education
Corp <CECO.O> and ITT Education <ESI.N> all had strong gains.
For more see [ID:nN04380999].
                                
 Shares of Corinthian Colleges were up 18.3 percent to
$9.31; Career Education was up 7.3 percent at $16.49; and ITT
shares gained 13 percent to $59.77.
                                
 In company news, shares of Mosaic Co <MOS.N> jumped 10
percent to $115.18 after the crop nutrient producer reported
quarterly revenue and profit that exceeded Wall Street
expectations.. [ID:nWNAS6849].
                                
 Due to strong gains on Tuesday, when Lehman Brothers
<LEH.N> put to rest liquidity concerns by amassing $4 billion
in fresh capital, the major market indexes were on track to end
the week with strong gains.
 (Additional reporting by Jennifer Coogan; Editing by Leslie
Adler)