Stocks rise in early trading after Labor Department says employers added 162,000 jobs in March

Stocks rise early on upbeat jobs report

NEW YORK — Stocks edged higher Monday following a jobs report that has boosted expectations for the economy.

The Labor Department said Friday that employers added 162,000 jobs in March. It was the biggest gains since the recession began in December 2007. However, the number was fewer than the 190,000 jobs economists forecast.

The stock market was closed Friday so investors didn’t have a chance to trade on the report before the weekend.

Private employers accounted for most of the gains. Temporary government hiring for the 2010 U.S. census did not pad the figures as much as economists had forecast, which helped keep the figure below expectations.

The unemployment rate remained at 9.7 percent for the third straight month.

High unemployment is considered a key stumbling block to a sustained recovery because it keeps consumers from spending and loan defaults elevated. The financial sector would get a big boost from a drop in loan losses, while consumer spending accounts for the majority of economic activity in the country.

A private trade group’s measure of the service sector, which covers 80 percent of non-farm jobs in the country, is due out later Monday. It is expected to show growth in the sector.

In the first half-hour of trading, the Dow Jones industrial average rose 26.37, or 0.2 percent, to 10,953.44. The broader Standard & Poor’s 500 index rose 4.57, or 0.4 percent, to 1,182.67. The Nasdaq composite index rose 13.52, or 0.6 percent, to 2,416.10.