MARKET SNAPSHOT: U.S. Stocks Higher As Jobs Data Lifts Sentiment

By Donna Kardos Yesalavich

NEW YORK (Dow Jones) -- U.S. stocks opened higher Friday as the government's report of fewer job losses in February than expected boosted sentiment.

The Dow Jones Industrial Average (DJI) was up 48 points, or 0.5%, to 10493, in early trading. Industrial giants Boeing (BA) and Caterpillar (CAT) led the measure's gains, with Boeing up 1.5% and Caterpillar up 1.4%.

The Nasdaq Composite (RIXF) rose 0.5%. The Standard & Poor's 500 (SPX) also climbed 0.5%, with its energy sector leading the gains as crude-oil futures rose above $81 a barrel. Among the sector's gainers, Massey Energy (MEE) jumped 2.9% while Peabody Energy (BTU) rose 1.4%.

The industrial sector was also particularly strong, along with materials as metals futures rose.

In other markets, the dollar strengthened while Treasurys fell, with the 10-year note off 15/32 to yield 3.663%. Gold futures climbed with other commodities.

The action came after the Labor Department said nonfarm payrolls fell by 36,000 in February compared with a revised 26,000 drop in January. Economists polled by Dow Jones Newswires were expecting payrolls to fall by 75,000 mainly because of the severe weather. The January figure was revised from an originally reported 20,000 decline.

The unemployment rate remained at 9.7% last month. Economists had forecast the jobless rate would edge higher to 9.8%. The better-than-expected jobs data came despite stormy weather on the East Coast last month which the government said may have temporarily hit payrolls and work hours.

"It has some weather distortions in it, but if you look through them you will see some hints that we'll likely see payroll numbers turn positive in the coming months," said Michael Strauss, chief economist and market strategist at Commonfund, an investment manager for nonprofit institutions. "The surprising thing is the weather impact wasn't greater. As weather normalizes a bit in March, we may see some fairly solid labor-market readings."

Also in focus, a report from the Nikkei newspaper said the Bank of Japan may take further easing measures, news that sent the Nikkei 225 up over 2% in Tokyo and lifted the dollar against the Japanese yen.

The dollar also strengthened against the euro Friday as Greek Prime Minister George Papandreou was due to meet in Luxembourg Jean-Claude Juncker, head of the Eurogroup forum of euro-zone finance ministers, before meeting with German Chancellor Angela Merkel in Berlin later in the day.

The meetings come as the Greek parliament began a debate on the government's recently announced austerity package as thousands of public sector workers walked off the job in a series of hastily announced strikes to protest the measures.

Among stocks in focus, communications chip maker Marvell Technology Group (MRVL) fell 1.4% despite reporting a fourth-quarter profit rise and first-quarter guidance that beat analyst estimates.

InterMune (ITMN) surged 61% after the company said U.S. government regulators will review the new drug application for its pirfenidone idiopathic pulmonary fibrosis treatment next week.

Still to come are data on consumer credit, due at 3 p.m. EST.