NEW YORK – U.S. stocks jumped 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. That’s the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent.

The surprising data gave stocks a jolt. The Dow Jones industrial average shot up 161 points in early trading before drifting lower. “In this economy only one variable matters right now and that variable is employment,” said Lawrence Creatura, an equity portfolio manager at Federated Investors.

“This report was great news. It was beyond all expectations, literally. The number was higher than even the highest forecast.”

The Standard & Poor’s 500 index added 16 points to 1,342, shortly after noon Eastern time. That’s a gain of 1.2 percent. 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 up 6.7 percent so far this year.

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 also said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery.

In other trading, the Dow Jones industrial average jumped 148 points to 12,847, a rise of 1.1 percent. Bank of America Corp. led the Dow, rising 4.2 percent. Only two stocks, Merck and Procter & Gamble, were lower.

The Nasdaq composite added 42 points, or 1.5 percent, to 2,901.

Treasury prices fell lifting the yield on the 10-year Treasury to 1.93 percent. When bond prices fall, yields rise. The benchmark 10-year rate had traded below 1.79 percent earlier this week as traders bought U.S. Treasurys on renewed concern over Europe’s ongoing debt crisis.

The U.S. jobs figures helped markets in Europe rally on Friday despite further evidence that the 17-country eurozone is heading for recession. Germany’s DAX rose 1.7 percent and France’s CAC-40 gained 1.5 percent.

Among companies whose stocks are making large moves:

• Genworth Financial soared 14 percent, the best gain in the S&P 500. The insurance company reported late Thursday that it swung to a profit in the most recent quarter, helped by gains in sales of life insurance.

• Weyerhaeuser gained 3.3 percent after reporting better quarterly earnings than analysts’ forecasts. The timber and real estate company’s earnings still sank 62 percent.

• Video game maker Take-Two Interactive Software Inc. jumped 4 percent. The company reported a 65 percent drop in quarterly profits after the market closed Thursday, but Wall Street’s analysts expected much worse.

NEW YORK – U.S. stocks jumped sharply in morning trading on news that the unemployment rate dropped to the lowest level in 2 years. The Dow Jones industrial average gained more than 150 points.

Before the market opened Friday, 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. The government said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery. A trade group said the service industry expanded at the fastest pace since last February.

The Standard & Poor’s 500 index added 16 points, or 1.3 percent, to 1,342, less than an hour after the opening bell. 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 6.5 percent so far this year.

The Dow Jones industrial average jumped 158 points to 12,864. That’s a gain of 1.3 percent. Bank of America Corp. led the Dow, rising 5.6 percent.

The Nasdaq composite added 39 points, or 1.3 percent, to 2,898.

The U.S. jobs figures helped stocks and the euro rally on Friday despite further evidence that the 17-country eurozone is heading for recession. Germany’s DAX rose 1.3 percent and France’s CAC-40 gained 0.8 percent.

Among companies whose stocks are making large moves Friday:

• Weyerhaeuser gained 4 percent after reporting better quarterly earnings than analysts’ forecasts. The timber and real estate company’s earnings still sank 62 percent.

• Video game maker Take-Two Interactive Software Inc. jumped 5 percent. The company reported a 65 percent drop in quarterly profits after the market closed Thursday, but Wall Street’s analysts expected much worse.

NEW YORK (Reuters) – Stock index futures rose sharply on Tuesday as upbeat Chinese and German data boosted optimism about the global economy after the S&P 500 index ended flat in 2011.

Global markets rallied, including in Asia where data showed improvement in Chinese manufacturing, while European shares also rose, led by mining stocks after the Chinese data lifted hopes that demand would be strong for metals.

The world's largest consumer of metals, avoided contraction in December, albeit slightly.

Also boosting sentiment, German unemployment fell more than forecast.

Investors could get more signals about a U.S. economic recovery, with data from the Institute for Supply Management (ISM) Index of National Factory Activity for December as well as November construction spending, both due at 10 a.m. EST (1500 GMT).

November construction spending is expected to show a gain of 0.5 percent, versus 0.8 percent, according to a Reuters survey of economists. The ISM manufacturing index is forecast rising to 53.2 percent in December from 52.7 percent in the previous month.

The Federal Open Market Committee will release minutes from its December 13 meeting is due at 2 p.m. ET (1900 GMT).

"A combination of beginning of the year giddiness and better than expected economic data in Asia and in Europe has the S&P futures well bid," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

But concerns about the euro zone debt crisis continued on the first trading day of the new year.

S&P 500 futures rose 18.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures jumped 180 points, and Nasdaq 100 futures advanced 38.5 points.

The broad S&P 500 ended flat for 2011. It lost a mere 0.003 percent, the closest to unchanged since 1947, according to Standard & Poor's.

Barclays Capital has downgraded five semiconductor stocks including Intel Corp (INTC.O), saying the sector is in for a "volatile" 2012 as an inventory correction extends into the first quarter, with a recovery due only in the second half.

Intel shares were up 1.4 percent at $24.58 in premarket trade.

Starbucks Corp (SBUX.O) shares will be in view after the coffee shop chain said it was raising prices in the U.S. Northeast and Sunbelt by an average of about 1 percent.

Jefferies & Co upgraded American Eagle Outfitters Inc (AEO.N) and Ann Inc (ANN.N) to "buy," saying U.S. specialty retailers could see better margins this year due to a slow but ongoing consumer recovery, combined with normalized cotton costs. Shares of American Eagle Outfitters rose 3.1 percent in premarket trade at $15.77.

The Thomson Reuters/PayNet small business lending index showed borrowing by small U.S. businesses hit its highest level in nearly four years in November and suggested an economy recovery was gathering momentum.

(Reporting By Angela Moon; editing by Jeffrey Benkoe)

NEW YORK – U.S. stock futures are jumping after new figures showed the number of people applying for unemployment benefits fell last week to the lowest level in nine months.

The gains also followed a move by the European Central Bank to cut a key interest rate by a quarter-point. The rate cut was roughly in line with expectations. The bank last cut rates only five weeks ago, on Nov. 3.

Less than an hour before the U.S. market opening, Dow Jones industrial average futures rose 67 points to 12,281. Standard & Poor’s 500 futures rose 6 points to 1,270.

The market will be closely watching a European economic summit in Brussels scheduled to start later Thursday.

TORONTO (Reuters) – Canadian stocks jumped more than 4 percent on Wednesday in their biggest single-day gain in more than two years, pushed up by an agreement by global central banks to tackle the euro-zone debt crisis and by a move by China to ease credit.

Commodity prices, particularly for oil, gold and base metals, rose on renewed investor optimism for the global economy, lifting the TSX's heavily weighted materials sector 6 percent.

Miner Goldcorp rose 5.4 percent to C$53.98 and Barrick Gold was up 2.8 percent at C$52.90, to lead gains.

Energy issues, up 4.7 percent, and financial stocks, up nearly 4 percent, also were big contributors to the rally as rejuvenated investors pulled their money from the security of government bonds into riskier plays.

Suncor Energy jumped 5.1 percent to C$30.72 to lead energy gains. Royal Bank of Canada led financials, gaining 5 percent to C$47.26.

The move by the TSX index mirrored hefty gains on other global markets as central banks from the world's leading economies, including the Bank of Canada, the U.S. Federal Reserve and the European Central Bank, agreed to lower the cost of dollar swap lines by 50 basis points, as well other measures.

"Santa has come early and he happens to look a lot like (Fed Chairman) Ben Bernanke, right down to the beard, and in his bag he has lots and lots of U.S. dollars available to exchange for euros in unlimited amounts," said Gavin Graham, president of Graham Investment Strategy.

"All the risk assets, whether it's gold or copper or oil or the Canadian dollar, are all shooting up and it's likely that we'll see a continuation of that (for the rest of the year)," Graham said.

The Toronto Stock Exchange's S&P/TSX composite index closed up 471.61 points, or 4 percent, at 12,204.11. It was the TSX's biggest single-day gain since March 23, 2009 when the market finished up more than 5 percent.

($1=$1.02 Canadian)

(Editing by Rob Wilson; editing by Peter Galloway)

NEW YORK (Reuters) – Stock index futures rose sharply on Wednesday, erasing earlier losses, after China said it was cutting its bank reserve requirement ratio by 50 basis points.

S&P 500 futures rose 10.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 85 points, and Nasdaq 100 futures added 22.5 points.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)

NEW YORK – Stocks indexes wavered between small gains and losses Tuesday as investors balanced another spike in Italy’s main borrowing rate with an increase in U.S. retail spending. The Dow Jones industrial average rose 35 points in afternoon trading.

Wal-Mart Stores Inc. lost 2.6 percent after reporting a surprise drop in earnings. Utilities were the only industry in the S&P 500 to fall.

Higher interest rates on government debt issued by Italy, Spain and other European countries rattled stock markets in Europe early Tuesday. The market rate for Italy’s 10-year bond jumped back above 7 percent. When rates crossed the 7 percent threshold last week, it raised worries about the country’s ability to manage its debts. Greece, Ireland and Portugal were forced to seek financial lifelines when their borrowing rates crossed the same mark.

In the U.S., the Commerce Department said early Tuesday that Americans spent more on autos, electronics and building supplies in October, raising retail sales for a fifth straight month. Sales increased 0.5 percent from the previous month, better than forecasts.

The retail sales report helped the U.S. stock market “show a certain degree of resilience in the wake of the negative headlines out of Europe,” said Todd Salamone, director of research at Schaeffer’s Investment Research.

The Dow was up 35 points, or 0.3 percent, to 12,113 as of 12:45 p.m. Eastern. The S&P 500 rose 4, or 0.3 percent, to 1,256. The Nasdaq composite gained 17, or 0.7 percent, to 2,674.

Sales at Staples Inc. fell short of analysts’ expectations, and the company also cut its earnings forecast for the year. Its stock dropped 5.5 percent, the most in the S&P 500 index.

Among other companies reporting quarterly results, Home Depot said spending on home projects and storm-related repairs helped lift earnings. The country’s largest home-improvement retailer also raised its earnings estimate for the year. The stock gave up early gains of 1 percent was trading 0.5 percent lower. Department store chain Saks Inc. posted stronger sales and rose 2.2 percent. Urban Outfitters Inc. lost 3.2 percent after the company missed Wall Street’s revenue forecasts.

Dell Inc. reports quarterly results after the market closes.

NEW YORK – Stocks rallied Friday as new governments get ready to take over in Italy and Greece, the two countries at the center of Europe’s debt crisis. Italy’s Senate approved an economic reform bill, opening the way for Premier Silvio Berlusconi to step down.

The Dow Jones industrial average is up 266 points, or 2.2 percent, to 12,159 as of 10:45 a.m. Eastern.

Walt Disney Co. jumped 7 percent in early trading, the biggest gain in the S&P 500. The company reported record annual profits and revenues after the market closed Thursday, thanks to stronger advertising sales at ESPN and the Disney Channel.

The S&P 500 rose 25, or 2.2 percent, to 1,264. Both the S&P 500 and the Dow are now on track for weekly gains. For the week, the S&P is up 0.9 percent, the Dow 1.5 percent.

The Nasdaq composite rose 48, or 1.8 percent, to 2,673.

U.S. bond markets were closed for Veterans Day.

Markets were pummeled Wednesday when Italy’s borrowing costs spiked and talks to name a new Greek prime minister broke down.

After Italy’s Senate passed the bill, world markets turned higher, the euro edged up and oil rose above $98 a barrel. Two-year Italian government borrowing costs dropped below 6 percent after topping 7 percent earlier in the week. The legislation still has to clear Italy’s lower house. Berlusconi has pledged to leave office once the reforms are passed.

In Greece, a former central banker was sworn in as interim prime minister. Lucas Papademos took over a coalition government after a two-week political crisis that jeopardized the country’s ability to continue receiving emergency loans.

In corporate news, D.R. Horton Inc. returned to a quarterly profit as more people bought houses. But the builder’s earnings and revenue fell below what analysts had expected. D.R. Horton’s stock dropped 1.8 percent in morning trading.

Nordstrom Inc. also reported stronger quarterly profit late Thursday. But the retailer lowered its full-year profit outlook below what analysts expected. Its stock fell 1.5 percent.

Viacom Inc., the parent of Nickelodeon, said it will move its stock listing to the Nasdaq Stock Market from the New York Stock Exchange next month because it’s more “cost effective.” The company’s class-B stock jumped 4 percent.

E-Trade Financial Corp. sank 5 percent. The online broker said late Thursday that it had decided against putting itself up for sale. E-Trade’s largest shareholder, the hedge fund Citadel Advisors, had been pushing for a sale.

NEW YORK – U.S. stock futures are jumping after European leaders agreed on a deal to slash Greece’s debt.

Banks agreed to take 50 percent losses on the Greek bonds that they hold, and European leaders agreed to strengthen a rescue fund to protect Italy and other large European economies. Worries that a European country could default had dragged down global stocks.

Reports later Thursday will show how strongly the U.S. economy grew between July and September, as well as how many Americans joined the unemployment line last week.

Two hours ahead of the opening of trading, Dow Jones industrial average futures are up 206, or 1.7 percent, to 12,008. S&P 500 index futures are up 25.80, or 2.1 percent, to 1,263.20. Nasdaq 100 futures are up 47.50, or 2 percent, to 2,374.

BANGKOK – World stock markets jumped Monday, buoyed by resilient economic indicators from Asia’s two biggest economies and hopes of progress in resolving Europe’s debt crisis.

Oil prices rose above $88 a barrel. The dollar fell against the euro but rose against the yen.

European shares advanced in early trading. Britain’s FTSE 100 gained 0.4 percent to 5,512.34 and Germany’s DAX added 0.9 percent to 6,021.92. France’s CAC-40 rose 0.5 percent to 3,188.44. Wall Street was headed for another day of gains, with the Dow Jones industrial average 0.3 percent higher at 11,795 and S&P 500 futures gaining 0.3 percent to 1,238.30

Asian shares posted solid gains earlier in the day as economic data from Japan and China showed a measure of strength.

Japan’s Nikkei 225 index added 1.9 percent to close at 8,843.98 after the government said exports grew for a second straight month in September. The country’s trade suffered a five-month decline in the wake of the March 11 earthquake and tsunami that devastated northeast Japan.

Mainland Chinese shares rose after HSBC said its preliminary China Manufacturing Purchasing Managers Index, which measures industrial production, rose to 51.1 in October from 49.9 in September. A result above 50 indicates expansion but the preliminary indicator is often subject to substantial revision.

The Shanghai Composite Index was 2.3 percent higher at 2,370.33 and the smaller Shenzhen Composite Index climbed 1.9 percent to 977.03.

Hong Kong’s Hang Seng soared 4.1 percent to 18,771.82 and South Korea’s Kospi shot up 3.3 percent to 1,898.32. Benchmarks in Singapore, Taiwan, Australia, India, Indonesia and the Philippines were also higher.

In Europe, leaders are to meet Wednesday to hammer out a concrete resolution to the region’s debt problems, including ways to fortify the euro 440 billion ($600 billion) bailout fund to help prevent larger economies that use the euro common currency, such as Italy, from being dragged into the crisis.

Weeks of intensive discussions by European leaders have so far failed to produce a decisive outcome.

“Markets will remain nervous ahead of Wednesday’s EU summit, hoping that officials can settle their differences and emerge with a concrete solution. In this respect, the risk of disappointment is high,” Credit Agricole CIB said in a research note.

South Korean constructions shares rose on expectations that the death of Libyan leader Moammar Gadhafi would lead to the resumption of construction projects in the North African country, Yonhap News Agency reported. Daewoo surged 5.5 percent. Hyundai Heavy Industries jumped 7.3 percent.

Chinese banking shares soared ahead of earnings reports to be released this week, analysts said. Hong Kong-listed Agricultural Bank of China jumped 8.5 percent, and Industrial and Commercial Bank of China, the world’s largest bank by market value, gained 5.5 percent.

Linus Yip, strategist at First Shanghai Securities in Hong Kong, said speculative investors appeared to be scooping up what were thought to be bargain-priced Hong Kong stocks.

“Today, there is some bargain-hunting for sectors like the Chinese insurance sector and Hong Kong property,” he said. Hong Kong-listed Ping An Insurance gained 6.9 percent. China Overseas Land & Investment Ltd. was up 9.3 percent.

In the U.S. on Friday, enthusiasm for stocks was on the upswing amid some positive third-quarter earnings reports from U.S. companies, which come despite a weak economy. Among S&P 500 companies reporting so far, seven out of ten have posted higher profits than expected.

The Dow Jones industrial average jumped 267.01 points, or 2.3 percent, to 11,808.79. The Dow is now up 2 percent from where it started 2011. Before Friday’s surge, it was down for the year. The Dow has risen for four weeks straight, the first time that has happened since January.

In currencies, the euro rose to $1.3889 from $1.3864 Friday in New York. The dollar rose to 76.22 yen from 76.12 yen.

Benchmark crude for December delivery was up 96 cents at $88.35 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.33 to settle at $87.40 in New York on Friday.

Brent crude was up 74 cents at $110.30 a barrel on the ICE Futures Exchange in London.