US STOCKS-Wall St extends gains on stimulus, bailout hopes

Fri Feb 6, 2009 4:30pm GMT

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* Grim January payrolls data fuel U.S. stimulus hopes

* Techs, financials lead market's advance

* Dow up 2.2 pct; S&P 500 up 1.9 pct; Nasdaq up 2 pct

* For up-to-the-minute market news, click [STXNEWS/US] (Updates to late morning)

NEW YORK, Feb 6 (Reuters) - U.S. stocks extended gains on Friday as dire jobs data persuaded investors Washington would act quickly on delivering a stimulus package seen as crucial to boosting an economy in deep recession.

At the same time, anticipation ahead of a bank bailout plan expected on Monday pushed bank stocks sharply higher. Bank of America (BAC.N) jumped more than 20 percent to $5.81.

Technology joined banks as the biggest standouts, in a rise that was nonetheless broad-based. JPMorgan shares (JPM.N) gained 8 percent to $26.50 while IBM (IBM.N) rose 2.4 percent to $94.08.

The Dow Jones industrial average .DJI added 175.78 points, or 2.18 percent, to 8,238.85. The S&P 500 Index .SPX gained 16.18 points, or 1.91 percent, to 862.03. The Nasdaq Composite .IXIC rose 30.53 points, or 1.97 percent, to 1,576.77.

The S&P financial index .GSPF rose 6 percent, while the semiconductor index .SOXX gained 2.2 percent.

U.S. nonfarm payrolls in January fell by the most since December 1974 as the recession deepened, sending the national unemployment rate to 7.6 percent. For more see [ID:nN06435445]. (Reporting by Rodrigo Campos; Editing by James Dalgleish)

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