Stocks extended gains in choppy action on Friday, led higher by materials and energy shares and comments by Federal Reserve Chairman Ben Bernanke that the Fed was ready to take further steps to help the recovery.

* The Dow Jones industrial average <.DJI> rose 120.83 points, or 1.21 percent, to 10,106.64. The Standard & Poor's 500 Index <.SPX> gained 12.34 points, or 1.18 percent, to 1,059.56. The Nasdaq Composite Index <.IXIC> climbed 21.15 points, or 1.00 percent, to 2,139.84.

(Reporting by Leah Schnurr; Editing by Kenneth Barry)