As it turned out, the jitters over the

employment report

in both the bond and stock markets were unfounded.

After the market-friendly numbers came out, the 30-year Treasury bond exploded up more than 2 full points, and when stocks opened, the major market averages soared.

The

Dow Jones Industrial Average

has jumped past its

Jan. 8 all-time closing high of 9643.32 and intraday high of 9647.96, lately up 197 to 9664.

Meanwhile, the 30-year bond was up 1 28/32 to 95 14/32, yielding 5.57%. The yield on the long bond stood at 5.70%

yesterday.

The

S&P 500

was up 23 to 1270.

The

Nasdaq Composite Index

was up 36 to 2329. The small-cap

Russell 2000

up 4 to 398.

TheStreet.com Internet Sector

index was up 9 to 534.

Yahoo!

(YHOO)

jumped 6 7/16 to 157 7/8 after

Hambrecht & Quist

upgraded it to buy from hold.

TheStreet.com E-Commerce Index

was up 1 to 96. The E-Commerce Index was

revised after yesterday's close, with

Cyberian Outpost

(COOL)

,

Digital River

(DRIV) - Get Report

and

uBid

(UBID)

replacing

Barnes & Noble

(BKS) - Get Report

,

Hollywood Entertainment

(HLYW)

and

Micro Warehouse

(MWHS)

.

Financials were soaring on the bond rally. The

Philadelphia Stock Exchange/KBW Bank Index

was up 2%, while the

American Stock Exchange Broker/Dealer Index

was up 1.6% and on pace for a new closing high. Retail stocks were flying. The

S&P Retail Index

was up 2.8%.

As for the jobs data, the

Labor Department

reported

nonfarm payrolls

rose 275,000 in February, while the unemployment rate rose to 4.4% from 4.3%. Consensus estimates were for nonfarm payrolls to rise 245,000 and for the unemployment rate to remain at 4.3%.

The strong jobs report provided continued evidence the economy continues to be strong, while there were no signs of inflation in the report. The report said average hourly earnings rose by just 0.1%, the smallest increase since February 1996.

Alan Skrainka, chief market strategist at

Edward Jones

in St. Louis, said economic growth has exceeded consensus forecasts for 10 consecutive quarters and that strong growth will ultimately lead to stronger corporate profits. As for inflation, it is "as dead as it gets," he said.

"We continue to be bullish," said Skrainka. "I just think investors should stay the course. The market will continue to be volatile, but right now the outlook is very positive" because of the strength in the economy.

"Blue-chips continue to lead the charge," he said, adding that large-cap growth stocks are continuing to outperform "the rest of the crowd."

Financials, retailers, health care and technology are the areas investors should emphasize in their portfolios, he said.

Industries tied to commodity prices, like energy, manufacturing and metals, "those are the areas we don't think are attractive for long-term investors," he said.

On the

New York Stock Exchange

, advancers were beating decliners 1,986 to 651 on 285 million shares. On the

Nasdaq Stock Market

, winners were beating losers 1,822 to 923 on 186 million shares. Severe problems with Nasdaq's

SelectNet

and

SOES

trading systems are keeping a lid on volume.

On the NYSE, 56 issues had set new 52-week highs while 12 had touched new lows. On the Nasdaq, 32 issues had set new highs while new lows totaled 23.

9:50 a.m.: Market Surges at the Open

Stocks rallied on the heels of a soaring Treasury market which surged after the

Labor Department

reported

nonfarm payrolls

rose 275,000 in February, while the unemployment rate rose to 4.4% from 4.3%.

Consensus estimates were for nonfarm payrolls to rise 245,000 and for the unemployment rate to remain at 4.3%.

The 30-year Treasury bond was up 2 2/32 to 95 20/32, yielding 5.55%.

The

Dow Jones Industrial Average

was up 149 to 9617. The

S&P 500

was up 21 to 1268. The

Nasdaq Composite Index

was up 42 to 2335. The

Russell 2000

was up 4 to 398.

TheStreet.com Internet Sector

index was up 14 to 537.

TheStreet.com E-Commerce Index

was up 3 to 97.

Most Up at Open -- NYSE

Telebras (TBH) , up 2 15/16 to 70

.

Most Up at Open -- Nasdaq

Level One Communications (LEVL) - Get Report, up 19 7/8 to 47

:

Intel

(INTC) - Get Report

has agreed to buy Level One for $2.2 billion in stock.

TheStreet.com

wrote about the deal

yesterday.

Most Down at Open -- NYSE

Newmont Mining (NEM) - Get Report, down 3/8 to 18 1/16

.

Most Down at Open -- Nasdaq

IDX Systems (IDXC) , down 10 3/8 to 15 5/8

: The company warned it expects to post a loss of 22 cents to 28 cents a share in the first quarter, short of the current

First Call

22-analyst consensus estimate of 35 cents. The company said first-quarter sales are expected to be in the range of $60 million to $65 million. The company blamed an unexpected deferral of purchasing decisions by its customers for the sales shortfall.