* OPEC sets output ceiling at 31.5 mln bpd - sources
* Nonfarm payrolls increase 211,000 in November
* Unemployment rate holds steady at 5 pct
* Average hourly earnings increase 4 cents
* Indexes up: Dow 1.04 pct, S&P 0.95 pct, Nasdaq 0.93 pct (Adds details, updates prices)
By Sweta Singh
Dec 4 (Reuters) - Wall Street opened higher on Friday after stronger-than-expected U.S. jobs data built the case for the Federal Reserve to raise interest rates this month for the first time in nearly a decade.
Nine of the 10 major S&P 500 sectors were higher. Only the energy index was weaker after sources said OPEC would maintain its production outlook in an oversupplied market. The utilities index led the advancers with a rise of 1.03 percent.
Oil prices slumped following the OPEC news.
Exxon was down 1.1 percent at $77.51, while Chevron was down 1.4 percent at $87.56.
Nonfarm payrolls increased 211,000 in November, the Labor Department reported, while September and October data was revised to show 35,000 more jobs than previously reported.
The unemployment rate held at a 7-1/2-year low of 5 percent, even as people returned to the labor force in a sign of confidence in the jobs market.
“Investors are looking at a potential of a Fed tightening as a glass half full. They are celebrating that the economy is strong enough to sustain higher interest rates,” Jack Ablin, chief investment officer at BMO Private Bank in Chicago, said.
Fed funds futures contracts showed that traders see about an 80 percent chance that the Federal Reserve will raise interest rates in December, up from 79 percent before the jobs report.
The Fed’s policy-setting committee will meet on Dec. 15-16.
Fed Chair Janet Yellen presented an upbeat assessment of the economy in Congressional testimony on Thursday, saying conditions had largely met the criteria for a rate hike.
The S&P 500 suffered its biggest daily drop since late September on Thursday after the European Central Bank disappointed market hopes for a more aggressive economic stimulus program.
Federal Reserve Bank of New York President William Dudley and ECB President Mario Draghi will participate in a meeting of the Economic Club of New York later on Friday.
At 9:47 a.m. ET (1447 GMT) the Dow Jones industrial average was up 180.92 points, or 1.04 percent, at 17,658.59, the S&P 500 was up 19.46 points, or 0.95 percent, at 2,069.08 and the Nasdaq Composite was up 46.81 points, or 0.93 percent, at 5,084.34.
Cooper Cos shares fell 11.8 percent to $125.32 after the medical device maker cut its 2016 outlook and reported a lower-than-expected quarterly profit.
Kalobios Pharmaceuticals shares rose 19.5 percent at $35.05 after the company said it was acquiring worldwide rights to a compound being developed for the treatment of Chagas disease.
GoPro shares fell 4.4 percent to $18.10 after Robert W. Baird cut its rating on the stock to “neutral” from “outperform”.
Advancing issues outnumbered decliners on the NYSE by 1,680 to 1,035. On the Nasdaq, 1,489 issues rose and 790 fell.
The S&P 500 index showed two new 52-week highs and 15 new lows, while the Nasdaq recorded 12 new highs and 34 new lows. (Reporting by Sweta Singh in Bengaluru; Editing by Don Sebastian)