US STOCKS-Dow, S&P end higher on financials, down for week

                                
 * U.S. data shows more labor market woes
                                
 * Jobless rate jumps to 6.1 percent, nearly 5-year high
                                
 * Dow up 0.3 pct, S&P 500 up 0.4 pct, Nasdaq off 0.1 pct
 (Updates to close)
                                
 By Kristina Cooke
                                
 NEW YORK, Sept 5 (Reuters) - The broader U.S. stock market
ended its worst week since May with modest gains on Friday, as
a rally in financial stocks helped the market reverse earlier
steep losses after a government report showed further
deterioration in the U.S. labor market.
                                
 News the unemployment rate jumped to a five-year high added
to worries about consumer spending and compounded fears of a
worsening global economic slowdown. Those fears had battered
stocks all week, leaving the S&P 500 with its worst five-day
performance since May.
                                
 The Nasdaq lagged the other indexes in Friday's session and
had its worst week since January, led lower by big-cap
technology shares. Analysts say technology is among sectors
most vulnerable to a global slowdown due to its exposure to
overseas markets.
                                
  But beaten-down financial shares rebounded, helping the
Dow and the S&P 500 rise. Lehman Brothers <LEH.N> rose 6.8
percent to $16.20 after sources familiar with the situation
said Blackstone Group LP <BX.N> and Kohlberg Kravis Roberts &
Co [KKR.UL] are each looking to buy parts of Lehman's real
estate and asset management units.
                                
 "We got the bad news on payrolls and the unemployment rate
this morning, but given the fact we were down so much yesterday
we're seeing a bit of a reflex rally with investors wanting to
take advantages of some of the bargains," said Bucky Hellwig,
senior vice president at Morgan Asset Management, in
Birmingham, Alabama, adding there was optimism about the
potential Lehman Brothers' deal.
                                
The Dow Jones industrial average <.DJI> rose 32.73 points,
or 0.29 percent, to 11,220.96, but ended down 2.8 percent on
the week.
                                
 The Standard & Poor's 500 Index <.SPX> climbed 5.48 points,
or 0.44 percent, to 1,242.31, ending down 3.2 on the week.
                                
The Nasdaq Composite Index <.IXIC>, meanwhile, slipped 3.16
points, or 0.14 percent, to 2,255.88, ending the week 4.7
percent lower.
                                
 The S&P's subindex of financial shares <.GSPF> rose 3.2
percent.
                                
 On the Nasdaq, Qualcomm shares fell 1.8 percent to $47.67,
while Apple declined 0.7 percent to $160.18.
                                
 SanDisk <SNDK.O> shares jumped 31.1 percent to $17.64 after
Samsung Electronics Co Ltd <005930.KS>, the world's top maker
of memory chips, said it may buy the flash memory maker in a
deal that could reshape a struggling industry.
                                
 And cigarette company Altria Group Inc <MO.N> is in
advanced talks to buy Skoal and Copenhagen smokeless tobacco
maker UST Inc <UST.N>, a source familiar with the discussions
told Reuters. UST shares jumped 25.1 percent to $67.55.
                                
 The Labor Department said 84,000 jobs were lost in August,
compared with the 75,000 economists had expected. June and July
job losses were also revised up.
                                
 Trading was low on the New York Stock Exchange, with about
1.2 billion shares changing hands, below last year's estimated
daily average of roughly 1.9 billion, while on Nasdaq, about
2.26 billion shares traded, above last year's daily average of
2.17 billion.
                                
 Advancing stocks outnumbered declining ones on the NYSE by
16 to 15, while on the Nasdaq decliners beat advancers by 15 to
13.
 (Editing by Leslie Adler)