US STOCKS-Wall St rallies in relief over U.S. payrolls

* Feb. job cuts less than expected, unemployment rate steady * Apple lifts Nasdaq as iPad to hit stores in early April * Higher oil prices boost Exxon Mobil, Chevron * Dow up 0.8 pct, S&P up 1.1 pct, Nasdaq up 1.2 pct * For up-to-the-minute market news, click [STXNEWS/US] (Updates to late afternoon)

By Edward Krudy

NEW YORK, March 5 (Reuters) - U.S. stocks rose on Friday to six-week highs as data showed U.S. employers cut fewer jobs than expected last month, offering relief to investors braced for bad news about the labor market.

The S&P 500 headed for its sixth day of gains. The Nasdaq, meanwhile, was having its best week since October and making a run at its highest close in 18 months as Apple Inc <AAPL.O> hit an all-time high after it said its much hyped iPad computer would arrive in U.S. stores in April.

Investors had been concerned severe winter weather that affected large swaths of the country would cause a larger drop in payrolls. But data showed non-farm payrolls shed 36,000 jobs in February compared with expectations in a Reuters survey for a loss of 50,000. The smaller-than-expected job loss was enough to buoy stocks For details, [ID:nN04107795]

"Investors were very nervous," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. "As soon as I saw the number, I just figured it was a non-event, which is, I guess, good."

There was broad participation across most market sectors, with cyclicals in the lead as commodity prices rose along with investor optimism.

Diversified manufacturer 3M Co <MMM.N> gained 1.2 percent to $81.97, and ranked among the Dow's top gainers after the jobs data showed the manufacturing sector added 1,000 jobs in February.

The market has been strong recently as stocks recover from a fall at the start of the year, with the decline sparked by a range of fears from possible soveriegn debt defaults in the euro zone to increased regulation. The S&P 500 is now off 1.3 percent from a 15-month closing high on Jan 19, having clawed back from a drop of more than 8 percent through Feb.8.

The Dow Jones industrial average <.DJI> gained 85.33 points, or 0.82 percent, to 10,529.47. The Standard & Poor's 500 Index <.SPX> added 12.14 points, or 1.08 percent, to 1,135.11. The Nasdaq Composite Index <.IXIC> rose 28.30 points, or 1.23 percent, to 2,320.61.

Apple boosted the Nasdaq as the shares surged nearly 4 percent to an all-time high at $219.70 in intraday trading after it said the first iPad computers will be in U.S. stores in early April. For details, see [ID:nN05202748]

The jobs data also gave commodities a lift, with crude oil hitting a seven-week high above $82 a barrel. An S&P energy index <.GSPE> shot up 1.6 percent, with energy among the S&P's best-performing sectors. [ID:nSGE62405D]

Dow components Chevron Corp and Exxon Mobil Corp rose, with Chevron <CVX.N> up 1.4 percent at $74.07, and Exxon <XOM.N> up 1.3 percent at $66.25. [ID:nSGE62405D]

Declining shares included Solarfun Power Holdings <SOLF.O>, which fell 8 percent to $6.92 after the company warned of a steeper fall in average selling prices in its first quarter. [ID:nSGE6240FM]

Transatlantic Holdings Inc <TRH.N> shares fell 3.5 percent to $51.86 after American International Group Inc <AIG.N> said it would sell its 13.8 percent stake in the company. AIG's stock gained 5.8 percent to $28.26. [ID:nN05208922]

For the week, major indexes are up more than 2 percent, with the Nasdaq up more than 3 percent. (Reporting by Edward Krudy; Editing by Jan Paschal)