YAHOO[BRIEFING.COM]: Investors looked past another dose of dismal economic data to focus on financial stocks, which helped propel the stock market 2.7% higher Friday. The latest earnings announcements essentially made for a nonevent.

Stocks began the session on a strong footing, unshaken by news that almost 600,000 nonfarm jobs were lost during January (actual = 598,000). Job losses during January exceeded expectations and are the most seen since 1975. However, a larger workforce has softened the blow. Unemployment now stands at 7.6%, but that is still shy of the 7.8% experienced in 1992. Still, unemployment jumped more than expected.

Instead of dwelling on the data, investors remained focused on the government's plan to help rejuvenate banks and the broader financial system. Treasury Secretary Geithner will unveil the plan Monday, but many expect the plan to expand existing government lending facilities and deploy capital injections. Concern that the government will have to nationalize select institutions has also eased.

Hope that the plan will bolster industry fundamentals drove financial stocks higher for the second straight session. Financials closed 8.1% higher with help from regional banks (+14.3%), diversified banks (+14.9%) and other diversified financial services companies (+15.4%).

The financial sector's leadership helped stocks post their first weekly gain in one month. The broader stock market gained 5.2% this week, but is still down 3.8% for the year. However, this week's rally gave the Nasdaq a year-to-date gain of nearly 1%.

Since the bank bailout plan is likely to provide the most immediate impact on the financial system and the broader economy, investors appeared less enthused about the Senate's broader economic stimulus plan. Reports indicate the economic stimulus plan is approaching completion, but there are still concerns that it may not secure adequate support.

Earnings announcements were generally overlooked this session, given that there weren't any major companies issuing quarterly results or offering guidance. Next week is also relatively light on earnings news. The focus Monday will be almost entirely on the Treasury's financial bailout plan.DJ30 +217.52 NASDAQ +45.47 NQ100 +2.6% R2K +3.8% SP400 +3.4% SP500 +22.75 NASDAQ Adv/Vol/Dec 2023/2.15 bln/654 NYSE Adv/Vol/Dec 2551/1.61 bln/538