The Dow Jones industrial average gained more than 140 points as U.S. stocks jumped sharply in morning trading Friday on news that the unemployment rate dropped to the lowest level in three years.
Before the market opened, the Labor Department said companies hired 243,000 employees in January, the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.
More evidence that the economy is gaining strength followed the jobs report. A trade group said the service industry expanded at the fastest pace since last February. The government said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery.
The Standard & Poor's 500 index added 16 points, or 1.3 percent, to 1,342, a half hour before noon. The S&P 500 is on track to rise for the fifth straight week, the longest weekly winning streak since January of 2011. It's gained 6.7 percent so far this year.
The Dow Jones industrial average jumped 142 points to 12,848. That's a gain of 1.1 percent. Bank of America Corp. led the Dow, rising 5.1 percent. Only two stocks, Merck and Procter & Gamble, were lower.
The Nasdaq composite added 42 points, or 1.4 percent, to 2,901.
