Dow opens at record high after strong July jobs report

US stocks opened higher on Friday, with the Dow hitting a record high, after data showed US employers hired more workers than expected in July, signaling labour market tightness.

The Labour Department reported showed that nonfarm payrolls increased by 209,000 jobs last month, above the 183,000 rise expected by economists polled by Reuters.

June's employment gain number was revised up to 231,000 from the previously reported 222,000.

Average hourly earnings rose 0.3 percent after gaining 0.2 percent in June, while the unemployment rate fell to 4.3 percent.

The strong jobs report is likely to clear the way for the Federal Reserve to announce a plan to start shrinking its $4.5 trillion bond portfolio in September, and could strengthen its case to raise rates for the third time this year in December.

Chances of a rate hike by the end of the year increased to 50 percent from 46 percent after the release of the data, according to CME Group's FedWatch tool.
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