U.S. stocks extend gains after key jobs report

U.S. stocks traded in a narrow range Friday, as investors digested the newly-released jobs report for indications of the economic conditions and the course of U.S. Federal Reserve's monetary policy.

By noon, the Dow Jones Industrial Average rose 54.41 points, or 0.32 percent, to 16,998.31. The S&P 500 gained 6.96 points, or 0.35 percent, to 2,000.36. The Nasdaq Composite Index was up 14.01 points, or 0.30 percent, to 4,721.44.

Total nonfarm payroll employment increased by 242,000 in February, topping market expectations, and the unemployment rate was unchanged at 4.9 percent, the U.S. Labor Department announced Friday.

In February, average hourly earnings for all employees on private nonfarm payrolls declined 3 cents to 25.35 U.S. dollars, following an increase of 12 cents in January. Average hourly earnings have risen by 2.2 percent over the year.

Analysts said the upbeat jobs data pointed to a modest recovery in the U.S. economy, and create conditions for the Fed to gradually raise interest rates this year.

"Lots of poor quality jobs might encourage the Fed to raise rate, but falling wages and hours should keep them at bay in March at least," said Chris Low, chief economist at FTN Financial.

The goods and services deficit was 45.7 billion dollars in January, up 1 billion dollars from the revised level of 44.7 billion dollars in December, the U.S. Commerce Department reported Friday. Enditem