Double Barrel Rally for Stocks

Updated from 4:03 p.m. EST

Stocks closed sharply higher for the day and the week Friday, after a government report showed that the economy created fewer jobs than expected in January, which eased concerns about the Federal Reserve's approach to raising interest rates. A rally in tobacco shares, led by Dow component Altria(MO Quote) gave the market an additional boost.

The Dow Jones Industrial Average added 123.03 points, or 1.1%, to 10,716.13; the S&P 500 rose 13.14 points, or 1.1%, to 1203.03, while the Nasdaq gained 29.02 points, or 1.4%, to 2086.66. The major indices posted their best single-session point gains since Dec. 1.

"There were a lot of favorable things today," said Larry Wachtel, senior market analyst with Wachovia Securities. "The interesting part is the Goldilocks scenario today, with everything rallying at the end with no fear of the Fed. The economy is growing, but not a breakneck pace. There was a favorable ruling for the tobacco stocks today. There's funds flowing in with mutual fund buying. The semiconductors were upgraded. All those things entered the fray today. The cup now looks half full." ...