The Dow Jones industrial average gained more than 100 points in early afternoon on Friday, buoyed by news that the jobless rate held at a 28-year low last month and wages increased at a subdued pace.

High-technology stocks continued their recovery, energy shares moved higher, and consumer names improved.

The Dow Jones was up 108.36 at 8978.92, having touched a high of 8983.65.

Shares of Merck have jumped $3-3/8 to $119-1/16 amid more talk of consolidation in the drug sector.

Bristol-Myers Squibb has risen $1-1/16 to $109 15/16, and Schering-Plough has advanced $1-7/16 to $88-5/16.

Meanwhile, oil stocks have picked up for the second session in a row, as hopes continue that production cutbacks will improve pricing in the sector.

Shares of Chevron, Mobil and Atlantic Richfield are all firmer.

Friday's unemployment figures showed a rate of 4.3% for May, unchanged from last month, and lower than market expectations.

Average earnings for May only grew by 4 cents to $12.73 an hour.

Job gains were stronger than expected, however, with 296,000 added to payrolls for the month, mostly in the service sector.

Traders concluded that the figures meant that the Fed would not raise interest rates.

Analysts said there was also optimism that the high-technology sector, which has been under fire for nearly six weeks, is starting to regain its steadiness.

Shares of Motorola are up $1/2 at $52, even though the electronics giant has said it might post a second-quarter operating loss.

However, the company also unveiled plans to cut back its work force, and make strategic moves aimed at clawing back profits.

The Nasdaq Composite Index has moved up 9.5 points.

Big Board advancers lead decliners by a 2-to-1 margin. NYSE volume totals about 266m shares.