U.S. stocks edge higher, bonds fall after astonishing jobs report

U.S. stock markets edged higher on Friday and bonds fell after data that showed a surprisingly strong pace of hiring in November.

-The Dow Jones Industrial Average gained 0.39% or 69.87 points to 17969.87

-The S&P 500 index gained 0.28% or 5.85 points to 2077.7

-The NASDAQ Composite Index gained 0.28% or 13.38 points to 4782.81 . As of 18:59 GMT

The rise was led by financials, but utilities fell as Treasury yields rose.

A report by the U.S. Labor Department showed the economy added more jobs in November than in any month since January 2012. Non-farm payrolls climbed 321,000 last month and beat estimates of 230,000. Unemployment was unchanged at a six-year low of 5.8%.

Bond prices in the U.S. fell, with the 2-year Treasury yield hitting the highest level since May 2011, as investors started betting the Federal Reserve would hike interest rates earlier than thought.

The massive jobs report sent the yield nearly 9 basis points higher. 10-year U.S. Treasury yield jumped 7.8 basis points to 2.312%.

The Dollar Index, which tracks the performance of the U.S. dollar against a basket of major currencies, hit its highest since March 2009, and climbed versus the Japanese yen to its highest levels since July 2007.

This was the tenth straight month the economy added more than 200,000 jobs, marking the longest stint since 1994. This adds more proof the U.S. economy is withstanding the slowdown seen in most developed countries. China and the Eurozone are witnessing a worrying slowdown, and Japan went into recession this year.

This is considered good news for U.S. stocks rather that overshadows a decline in money supply in the economy, as the U.S. economy seems to withstand the global slowdown, and that the interest rate increases will be gradual.

Also, more jobs mean more spending, which boosts overall growth and earnings.