NEW YORK (CNN/Money) - Stocks rallied out of the gate Friday morning, as investors cheered a surprise rise in monthly payrolls -- the first in eight months.

Just after 10 a.m. ET, the Nasdaq composite (up 38.58 to 1874.80, Charts) spiked more than 2 percent, while the Dow Jones industrial average (up 122.51 to 9610.31, Charts) and the Standard & Poor's 500 (up 13.85 to 1034.09, Charts) rose close to 1.5 percent. All three indexes were within range to end the week higher, with the Dow up 175 points, the Nasdaq 44 points and the S&P 500 23 points as of Thursday's close.

The Labor Department said employers added 57,000 jobs to their payrolls in September after losing a revised 41,000 jobs in the previous month. The reading soared past Wall Street's expectations for a loss of 30,000 jobs, according to Reuters Research. Meanwhile, the unemployment rate held at 6.1 percent from August, which also was better than forecasts for a rise to 6.2 percent.

The optimistic report came a day after investors mulled news that weekly jobless claims had jumped more than expected last week.

While the jobs report took the spotlight at the open, investors also found comfort in a better-than-expected report from the Institute for Supply Management on the services sector. The ISM services index slipped to 63.3 in September, but fell less than the forecasted drop to 63 from 65.1 in August. The reading also was still well above the reading of 50 that signals sector expansion.

Individual corporate news also captured some attention.

Siebel Systems (SEBL: up $0.80 to $11.35, Research, Estimates) surged nearly 8 percent after the company said late Thursday it expects third-quarter revenue to come in at the lower end of its previous forecast, but that its profits would meet analysts' estimates. Smith Barney raised its rating on the company to "buy" from "hold."

Dow component 3M (MMM: up $2.06 to $73.34, Research, Estimates) also bumped up 3 percent at the open after Lehman Brothers upgraded the conglomerate to "overweight" from "equal-weight," raised its price target to $85 from $70, and upped its 2004 earnings estimates following the company's analyst meeting. Lehman said 3M could report better-than-expected earnings next year, citing the pace of growth.

Exxon Mobil (XOM: up $0.32 to $37.88, Research, Estimates), also a Dow member, bounced more than 1 percent on reports that it may strike a deal with Russian oil firm Yukos.

Treasury prices tumbled after the jobs and services reports, with the 10-year sinking 1-10/32 points to yield 4.52 percent from 3.99 percent late Thursday. The dollar gained ground against the yen and the euro.

Brent crude oil futures fell 21 cents to $27.60 a barrel in London. COMEX gold rose 60 cents to $384.30 an ounce.

European markets rose in afternoon trading there. Asian stocks ended mostly higher.