U.S. stocks climbed on Friday after data showed the economy shed far fewer jobs than forecast last month and factory orders unexpectedly rose.
U.S. employers cut 11,000 jobs in November, the smallest loss since the start of the recession in December 2007, while the unemployment rate fell, the Labor Department said.
An improving labor market is considered crucial to a recovering economy.
It's just good news. It's a sign that things are improving and they are improving better than most people thought, and you've got to believe it's real, said Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Co in Reading, Pennsylvania.
The Dow Jones industrial average <.DJI> gained 123.26 points, or 1.19 percent, to 10,489.41. The Standard & Poor's 500 Index <.SPX> climbed 15.26 points, or 1.39 percent, to 1,115.18. The Nasdaq Composite Index <.IXIC> jumped 36.63 points, or 1.69 percent, to 2,209.77.
Further supporting the advance was a government report that indicated inventories at U.S. factories rose for the first time in over a year in October, while factory orders were up 0.6 percent.
The rally was broad-based, with all 10 S&P sectors up, led by a 2 percent gain in the S&P Industrials index <.GSPI>.
Bank of America Corp
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)