Stocks gain 61

NEW YORK Stocks rose modestly today on employment data thatoffered cautious optimism that an extremely tight job market waseasing slightly.

The Dow Jones industrial average rose 61.17 to close at 10,767.75.

Broader stock indicators were also higher.

The nation's unemployment level was unchanged at 4 percent inJuly, close to a three-decade low, despite the loss of 108,000payroll jobs during the month, the biggest setback in nine years.

But all of the losses resulted from 290,000 temporary governmentworkers laid off in July because their work on the census wasfinished.

The Labor Department report showed private payrolls actually roseby 138,000 during the month. However, analysts noted that lastmonth's gain in private sector jobs was down significantly from ajump of 242,000 in June.

"That's probably going to be viewed as the most important evidencethat the Federal Reserve Board won't increase interest rates at theend of August," said James Meyer, director of research at JanneyMontgomery Scott in Philadelphia.

Advancing issues outnumbered decliners on the New York StockExchange, with 1,703 up, 1,099 down and 521 unchanged, on volume of954.3 million shares.

The U.S. dollar was mixed against other key currencies in Europe.

The euro was quoted at 90.75 cents in late European trading, upfrom 90.48 cents late Thursday.

Other dollar rates in Europe, compared with late Thursday,included 108.54 Japanese yen, up from 108.26; 1.7052 Swiss francs,down from 1.7070; 1.4881 Canadian dollars, up from 1.4838.

The British pound was quoted at $1.5056, up from $1.4942.

Gold in London slipped to $274.50 per troy ounce from $275.10.

Silver closed in London at $4.94, unchanged.