US SMALL/MIDCAPS-Stocks gain after jobs data show recovery hopes

NEW YORK, Sept 3 (Reuters) - Mid- and small cap stocks rose on Friday after the latest data on U.S. employment raised hopes that the economy may not be weakening as feared.

The S&P MidCap 400 index .MID ended up 1.4 percent while the S&P SmallCap 600 index .SML rose 1.7 percent.

The broad S&P 500 index .SPX closed its best week in eight on Friday, up 1.3 percent.

Sectors that are considered sensitive to economic growth including technology and commodities were the top gainers among mid-cap stocks.

The Labor Department reported that U.S. payrolls fell for a third straight month in August, but the loss of 54,000 non-farm jobs was far less than the 100,000 expected by economists polled by Reuters, and private hiring surprised on the upside.

"You see the light at the end of the tunnel, and in prior (jobs) reports, you definitely didn't see that," said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.

The mid-cap telecom services sector .4GSPL was up 3.1 percent, the top gainer on the mid-cap index, and the materials sector .4GSPM rose 1.7 percent.

Take-Two Interactive Inc (TTWO.O) shares rose 7.3 percent to $9.50 a day after the video game maker smashed Wall Street expectations for its fiscal third quarter and raised its forecast for the current fourth quarter. For details, see [ID:nN02250704]

Shares of Ulta Salon, Cosmetics & Fragrance (ULTA.O) gained 18.3 percent to $26.30 after the company posted a higher-than-expected quarterly profit and forecast a strong third quarter. [ID:nSGE6811BO]

On the downside, Celldex Therapeutics Inc (CLDX.O) fell 26.2 percent to $3.53 after the company said it would go ahead alone with the development of its cancer vaccine, its lead product, after partner Pfizer pulled out. [ID:nSGE6820ET]

Quiksilver Inc (ZQK.N) fell 11.5 percent to $3.63, a day after the retailer reported lower quarterly revenue and forecast a drop in fourth-quarter sales. [ID:nSGE6820GY] (Reporting by Angela Moon, Editing by Leslie Adler)