US stocks have opened higher as a surprisingly strong jobs report suggests the economic recovery is on track.

The monthly jobs report said the unemployment rate fell to 7.7 per cent from 7.9 per cent, while the net number of jobs gained came in at 236,000, according to the Labor Department.

Both numbers were better than expected.

Five minutes into trade on Friday, the Dow Jones Industrial average gained 71.21 (0.5 per cent) to 14,400.7, climbing to a new intra-day record.

The broad-based S&P 500 added 6.79 (0.44 per cent) to 1,551.05. The index was about 14 points below its all-time closing high.

The tech-rich Nasdaq composite index increased by 22.57 (0.7 per cent) to 3,244.93.

Analysts hailed the strong jobs report.

“American companies are hiring again in greater numbers,” said Sal Guatieri, senior economist of BMO Capital Markets.

“Employment should strengthen further as the fiscal fog clears and companies see sustained strength in consumer spending and housing activity.”