Stocks rose sharply on Friday, with the S&P 500 bouncing back from a five-session drop, as an upbeat November jobs report had the unemployment rate falling to a five-year low and a survey on consumer confidence hit a five-month high.
Halting a five-session losing streak, the Dow Jones Industrial Average ended 198 points higher, with all but one of its 30 components gaining.
The S&P 500 also rallied to close 20 points up, with consumer staples and industrials fronting gains that extended to all 10 of its major industry groups.
The Nasdaq's 29-point climb had it clearing its loss for the week.
"It sounds like the market is getting to good news is good news, not bad news," said Phil Orlando, equity market strategist at Federated Investors.
The non-farm payrolls report was "excellent, across the board. I really can't find a hole in this. We're now looking at a four-month average of just over 200,000," said Orlando.
Stocks furthered their gains after The Thomson Reuters/University of Michigan's preliminary reading on consumer sentiment came in at 82.5 in December, beating expectations.
The rise in consumer sentiment "has positive implications on the potential for getting a better Christmas than we thought a few weeks ago. Consumer spending accounts for 70 percent of GDP, and with Christmas spending underway, this reading is critically important," Orlando added.
The dollar edged lower against currency rivals and the 10-year Treasury yield held at 2.87 percent, after leaping to 2.9 percent in the immediate aftermath of the jobs report.
Gold futures fell $2.90, or 0.2 percent, to $1,229 an ounce; crude futures gained 27 cents, or 0.3 percent, to $97.65 a barrel.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell below 14.
The government's jobs report found 203,000 jobs were added in November, with the jobless rate falling to 7.0 percent. Analysts polled by Reuters had expected that 180,000 jobs were created last month, with unemployment marginally lower at 7.2 percent.
"It was a really good jobs report. There were a lot of positives in there. Manufacturing jobs are at their best level in over a year. Construction jobs being higher again is always good for the economy," said JJ Kinahan, chief market strategist at TD Ameritrade.
But Kinahan did not think the data moved any cuts in stimulus by the Federal Reserve into December.
"We do have this Fed meeting coming up, but that's right over the Christmas holidays. It would be odd timing," he said. Data on Thursday showed the economy grew faster-than-expected in the third quarter, fueling fears the Fed could start tapering its $85 billion monthly bond purchases before years end, rather than in the first quarter of 2014.
First published December 6 2013, 1:13 PM