Wall Street gains on job growth; earnings next hurdle

US stocks started a traditionally healthy month on strong footing after solid jobs figures, but the S&P 500 may need help to break to new multi-year highs.

The Dow Jones industrial average hit 12,419.71 -- its highest intraday level going back to June 2008 -- before closing up 56.99 points, or 0.46 percent, at 12,376.72. The Standard & Poor's 500 rose 6.58 points, or 0.50 percent, to 1,332.41. The Nasdaq Composite gained 8.53 points, or 0.31 percent, to 2,789.60.

European shares hit its highest close in just over three weeks after strong US jobs data supported the view the global recovery was on track, while technicals also pointed to a more bullish trend.

The pan-European FTSEurofirst 300 index of top shares closed up 1.5 percent at 1,141.40 points. Prospects for technicals brightened after the euro zone's blue chip Euro STOXX 50 index moved above its 50-day moving average, but fund managers were still said to be stock selective.

Japan's Nikkei average began a new financial year with a small loss, running out of  steam after bumping into key technical resistance, and more losses are expected in the near term as companies are likely to lower their profit outlooks after last month's earthquake.

Japanese shares have recouped around two-thirds of their losses from a massive post-quake sell off but traders said the rebound had run its course and shares may fall next week as more companies threaten to sour the mood with bad news on profits.    

The benchmark Nikkei climbed as high as 9,822.06 on Friday, hitting its 200-day moving average and its highest since a panic sell-off on March 14, but retreated to end the day down 0.5 percent at 9,708.39. The broader Topix shed 0.8 percent to 862.62.