U.S. stocks advanced

U.S. stocks advanced, extending the best start to a year for the Standard & Poor’s 500 Index since 1989, after a report showed that employment growth topped estimates and the jobless rate unexpectedly fell to 8.3 percent. Stocks and bond yields jumped as the report fueled optimism the economy is weathering the European debt crisis. The 243,000 increase in payrolls was the most since April and exceeded all forecasts. The unemployment rate dropped to the lowest since February 2009.

Financial and industrial shares led the gains among 10 groups in the S&P 500. Bank of America (ВАС) added 4.8 percent to $7.81. Caterpillar (САТ) increased 2.4 percent to $112.97. Alcoa (АА) climbed 2.4 percent to $10.67. FedEx jumped 1.4 percent to $94.04.

Genworth Financial soared 14 percent, the most in the S&P 500, to $9.18. Chief Executive Officer Michael Fraizer has scaled back the retirement-products business to conserve capital as Genworth seeks to maintain sales of U.S. mortgage coverage. The company has no plans to add more capital to the U.S. mortgage insurance operation, Fraizer said today.

Tyson Foods rose 5.3 percent to $19.61. The meat processor reported first-quarter earnings of 42 cents a share. On average, the analysts surveyed by Bloomberg estimated profit of 34 cents.

Brocade Communications Systems Inc. rose 1.2 percent to $5.90. Blackstone Group LP is studying a leveraged buyout of the company, said a person with knowledge of the situation. While Blackstone is in talks with Brocade, which has been seeking a buyer since 2009, reaching a deal may be difficult, said the person.

Estee Lauder Cos. lost 4.3 percent to $56.32. The maker of Mac cosmetics and Clinique skin care forecast third-quarter earnings of no more than 32 cents a share, before restructuring charges, missing the average analyst estimate of 41 cents.