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Internets, Financials Rally On Jobs Data

Financial shares rallied 3% Friday on hopes that a market-friendly July jobs report could mean the end of Fed rate hikes. Internet stocks rose almost 2%.

The ISDEX gained 12 to 730, but finished 11 points off its high for the day. The Nasdaq added 27 to 3787, but closed 60 points off its high. The S&P 500 rose 10 to close at its high of 1462, and the Dow climbed 61 to 10,767. Volume declined to 948 million shares on the NYSE and 1.43 billion on the Nasdaq. Breadth improved from Thursday, with advancers leading decliners by 16 to 11 on the NYSE and 22 to 16 on the Nasdaq. July's employment data showed a weaker-than-expected 108,000 jobs loss, but minus departing census workers, the private sector added 182,000 jobs. The unemployment rate was in line with estimates at a 4% rate, but hourly wages came in higher than expected at a 0.4% gain. For earnings reports, visit our earnings calendar and reported earnings.

After the bell on Thursday, Jupiter Communications blew away estimates by 18 cents with earnings of 11 cents a share. The stock rose 3/8 to 25 7/8 after trading as high as 30. Emulex soared 20 3/8 to 67 15/16 after beating estimates by 4 cents with 25-cent earnings. Netpliance slipped 5/8 to 6 7/8 after beating estimates by 3 cents with a 68-cent loss. theglobe.com beat estimates by 8 cents with a 33-cent loss, but the stock slipped 1/16 to 1 9/16.

TIBCO Software gained 2 9/16 to 104 11/16 on news that it is buying XML developer Extensibility for $100 million in stock.

Cisco Systems tacked on another 1 1/16 to 65 7/16 after Morgan Stanley Dean Witter said it expects the company to exceed estimates by a penny next Tuesday. Cisco is expected to report earnings of 15 cents a share. Cisco fell below the important $60 level yesterday, but found support at its 200-day moving average at 58. A close above 70 would be bullish.

CMGI gained 3/4 to 37 on news that it will sell some assets of its Magnitude Network unit to GlobalMedia.com for $6 million in stock. For more on CMGI, click here.

BroadVision rose 13/16 to 35 13/16 after ABN Amro reiterated its Buy rating following an analyst meeting focused on addressing recent weakness in the stock.

Verio gained 2 1/8 to 54 1/2 on news that NTT remains committed to its $5.5 billion takeover bid.

CAIS Internet rose 1 15/16 to 10 on news that it had received a previously announced $40 million cash investment from Microsoft .

PlanetRX.com was unchanged at 15/16 on news that chairman William Razzouk has resigned to pursue other interests.

NBC Internet gained 3/8 to 10 7/8 on a USB Piper Jaffray Buy rating and $16 price target.

Vignette tacked on 1/4 to 40. The stock has risen almost 50% off its Wednesday low of 27 on news of alliances with IBM and Arthur Andersen. The stock turned back today at 42 5/8 after filling a gap down from last week when it broke its uptrend.

Sonus Networks gained another 16 3/8 to 218 1/2, but down from an intraday high of 227 3/16, a day after soaring 24 points on a bullish conference presentation.

Among recent IPOs, Avici gave back 7 1/2 to 156, SpeechWorks rose 11 1/4 to 98 3/4, and Corvis gained 16 3/8 to 108 7/16.

Some technical comments on the market: This seems to be a pattern lately: the markets initially rise on signs of an economic slowdown, but then either don't follow