Stocks advance after jobs report

NEW YORK (CNNMoney) — U.S. stocks posted solid gains on the first day of the second quarter, bolstered by the government’s stronger-than-expected jobs report.

The closely-watched report showed a gain of 216,000 jobs in March — easily topping forecasts. The unemployment rate dipped to 8.8%.

The Dow Jones industrial average (INDU) climbed 92 points, or 0.8%; the S&P 500 (SPX) added 11 points, or 0.8%; and the Nasdaq Composite (COMP) rose 17 points, or 0.6%.

Friday’s early gains were fairly broad, with 24 out of the Dow’s 30 members trading in the green. The Dow struck a new 2011 intra-day high in mid-morning trading.

“These mildly-positive economic reports are going to keep the market moving higher, despite high oil prices and ongoing geopolitical issues,” said Stephen Carl, head equity trader with Williams Capital.

Traders responded positively to the data. Today’s jobs report is the latest economic data to show that the U.S. economy remains in a slow, but steady, period of economic recovery. While still elevated, the unemployment rate now sits at its lowest level in two years.

“The revival in U.S. economic growth is resilient enough to withstand the shocks that we’ve been hit with,” said Lakshman Achuthan, managing director of the Economic Cycle Research Institute.

“Even if something new came along, it wouldn’t necessarily just tank the economy,” he said.

Investors were also digesting a new offer for the NYSE (NYX, Fortune 500) from Nasdaq (NDAQ) and ICE (ICE). Nasdaq and IntercontinentalExchange offered $42.50 a share, or $11.3 billion, for NYSE Euronext, topping the bid from rival Deutsche Boerse by nearly 19%. Shares of NYSE jumped 11%, Nasdaq shares were up 2% and ICE shares fell 4%.

On Thursday, U.S. stocks ended the day narrowly mixed, but stocks posted solid gains the first quarter, despite geopolitical turmoil in the Middle East and the March earthquake and nuclear crisis in Japan.

Companies: Shares of Krispy Kreme (KKD) plunged 18%, a day after the company reported earnings that came in well short of analyst expectations.

Office Depot (ODP, Fortune 500) shares sank 16% after the company disclosed that it will have to re-state its 2010 financial results after the IRS denied a claim for $80 million in tax benefits.

Also, major automakers including General Motors (GM), Ford (F, Fortune 500) and Toyota (TM) will release their monthly sales reports.

Economy: The Institute for Supply Management’s said its manufacturing index fell slightly to a reading of 61.2 in March, compared with the 61.4 reading that economists had expected.

The Commerce Department’s report on construction spending showed a decline of 1.4% in February, worse than the decline of 0.7% economists were looking for.

World markets: Asian markets ended the session mixed. The Shanghai Composite rose 1.3%, and the Hang Seng in Hong Kong added 1.2%. But Japan’s Nikkei eased 0.5%, after a report showed auto sales in the nation plunged 37% in March.

European stocks rose in midday trading. Britain’s FTSE 100 rose 1%, the DAX in Germany gained 1.2% and France’s CAC 40 edged higher 0.8%.

Currencies and commodities: The dollar rose against the euro, the Japanese yen and the British pound.

Oil for May delivery rose 26 cents to $106.98 a barrel.

Gold futures for June delivery slipped $17.30 to $1,422 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.51% from 3.45% late Thursday.  

First Published: April 1, 2011: 9:43 AM ET