* Payrolls better than expected
* ISM shows services sector slowing
* Indexes up: Dow 0.8 pct, S&P 0.9 pct, Nasdaq 1 pct
* For up-to-the-minute market news see [STXNEWS/US] (Adds ISM data, quote, updates prices)
By Chuck Mikolajczak
NEW YORK, Sept 3 (Reuters) - Wall Street advanced on Friday after a better-than-expected jobs report lifted investor optimism on the economy but gains were checked after data showed services sector activity slowed.
Wall Street initially climbed more than 1 percent after the Labor Department said employment fell for a third straight month in August, but the job losses were far less than expected. Also, private employers added more staff than forecast. For details, see [ID:nN02227856]
The major indexes trimmed gains after the Institute for Supply Management said the U.S. non-manufacturing sector grew in August for an eighth straight month but at a slower pace and below forecast. [ID:nN03111828]
"The jobs number is obviously a much bigger number for the market than the ISM number, but I wouldn't completely ignore it," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co in San Francisco.
"It's not a great number and shows we are still bumping along the bottom here, really."
The Dow Jones industrial average <.DJI> gained 80 points, or 0.78 percent, to 10,400.10. The Standard & Poor's 500 Index <.SPX> rose 9.47 points, or 0.87 percent, to 1,099.57. The Nasdaq Composite Index <.IXIC> advanced 22.60 points, or 1.03 percent, to 2,222.61.
Take-Two Interactive Inc
Campbell Soup Co
Celldex Therapeutics Inc
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For a Reuters Insider take on the jobs report see [http://link.reuters.com/vef98n]
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)