Stocks are up more than one percent in midday trading on news that the jobless rate dropped to 8.3 percent -- the lowest level in three years. World markets also rallied in light of the forecast-busting report.
Leading the Dow is Bank of America, which was up more than 5 percent.
The dollar is rising against most major currencies.
The stock market is off to its fastest start in 15 years as more investors start to believe that the economy is on the right path.
The Dow has gained 4 percent in 2012. The S&P is on track to have its fifth straight positive week, the longest weekly winning streak in a year.
President Barack Obama says the economy is growing stronger and the economic recovery is speeding up.
The Labor Department says 243,000 jobs were added in January, far more than economists expected. The unemployment rate dropped to 8.3 percent, the lowest in three years.
Obama called the report good news, but he says there are still too many Americans looking for work. He also warned that the unemployment rate could still seesaw in the coming months.
In other upbeat economic news, a trade group says the service industry grew last month at the fastest pace in a year. The Institute for Supply Management says its index jumped to 56.8 percent in January from 53 percent in December. Any reading above 50 indicates expansion.
And, the Commerce Department says orders to U.S. factories rose in December, capping off another strong year for manufacturing. Orders were up 1.1 percent for the month and 12.1 percent for the year.
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