Dow up sharply on strong jobs report

Good news was finally good news for the market Friday.

Stocks rose sharply after the government reported a fourth straight month of solid U.S. job gains, the latest encouraging sign for the economy.

The strengthening job market focused investors on the nation's improving economy instead of concerns about the Federal Reserve's stimulus, snapping a five-day losing streak for stocks.

Stocks had been falling this week after a string of positive economic reports made investors worry the Fed would taper its $85 billion in monthly bond purchases, which have kept long-term interest rates low and supported the stock market.

Now that hiring is showing consistent strength, investors seem to be letting go of their worry that the economy isn't ready for the Fed to start weaning the nation off that stimulus.

"It's refreshing to see the markets react positively, because we've been in a mode for so long of 'good news is bad news,' " said Randy Frederick, a director of trading and derivatives at Charles Schwab.

The Dow Jones industrial average closed up 198.69 points to 16,020.20. The Standard & Poor's 500 index rose 1.12 percent to 1,805.09. The Nasdaq composite rose 0.73 percent to 4,062.52. -- AP