Although modest, the market's gains built on Thursday's big rally, an indication that investors are feeling confident enough in the economy to place more bets rather than cash in profits.

"It is pretty impressive," said Todd Clark, head of listed equity trading at Wells Fargo Securities. "In general, the tone of the market has been much better."

After falling as much as 86.60 in early trading, the Dow Jones industrial average closed up 8.77, or 0.1, at 8,784.95, according to preliminary calculations. Lifted mostly by Thursday's 180-point surge and a 171-point rally on Monday, the Dow posted its second straight weekly advance, climbing 2.1 percent.

Yesterday, the Nasdaq composite index advanced 9.29, or 0.7 percent, to 1,447.75. For the week, the Nasdaq rose 4.4 percent.

The Standard & Poor's 500 index ended yesterday unchanged at 927.57. For the week, the S&P rose 2.1 percent.

Investors initially were unnerved by news that the nation's unemployment rate remained at 6 percent in December as a disappointing holiday season for retailers and manufacturers cost more than 101,000 jobs, the biggest loss in 10 months, according to the Labor Department. Analysts expected jobs to rise by 30,000.

But the market still rose, a sign that investors believe the market is trying to snap its three-year losing streak.

"More often than not, the data have been better than people were looking for," said Jack Caffrey, equities strategist at J.P. Morgan Private Bank.

The market's gains were limited, however, by investors considering the ramifications of North Korea's decision to withdraw from the 1968 Nuclear Nonproliferation Treaty.

Brokerage house upgrades made some stocks winners Yesterday. U.S. Steel rose $1 to $14.70 after Prudential Securities raised its recommendation to "buy" from "hold."

Abercrombie & Fitch advanced 36 cents to $26.39 after Credit Suisse First Boston upgraded the retailer to "outperform" from "neutral."

One of yesterday's biggest losers was Lexmark, sliding $4 to $62.26 after the printer maker warned it could miss analysts' first-quarter earnings expectations.

Advancing issues matched decliners on the New York Stock Exchange. Trading volume was light.

The Russell 2000 index, which tracks smaller company stocks, rose 0.50 to 396.44.