A gratifying May employment report and Intel's strong mid-quarter update gave Wall Street a moderate advance Friday, with falling oil prices padding the market's gain. But the tech-heavy Nasdaq still posted a loss for the week.

The government's latest payroll figures pointed to continuing strength in job creation -- a key piece of the economic recovery that had been lagging coming into 2004. With more than 1 million new jobs in the past three months alone, investors were assured of the economy's ability to continue growing.

The Dow Jones industrial average gained 46.91, or 0.5 percent, to 10,242.82. The index had been more than 100 points higher earlier in the session.

Broader stock indicators also advanced. The Standard & Poor's 500-stock index was up 5.86, or 0.5 percent, at 1122.50, and the Nasdaq composite index rose 18.36, or 0.9 percent, to 1978.62.

For the week, the Nasdaq lost 0.4 percent, while the Dow rose 0.5 percent and the S&P 500 was up 0.2 percent. It was the second straight up week for the Dow and S&P 500, while the Nasdaq had its first weekly loss after two weeks of gains.

According to the Labor Department, the economy added 248,000 jobs in May, and the unemployment rate held steady at 5.6 percent. Payroll figures from March and April were revised upward.

"The upside momentum in the market has definitely returned," said Keith Keenan, vice president of institutional trading at Wall Street Access. "I think the market is very comfortable with the jobs figure and the state of the economy, and has already discounted a rate increase by the Fed later this month."

In the short term, falling oil prices also contributed to Wall Street's good mood. The benchmark light sweet crude oil was down 79 cents at $38.49 a barrel on the New York Mercantile Exchange.

Investors were also buoyed by Dow component Intel's mid-quarter outlook, issued after Thursday's session. The technology bellwether said it expects sales for the quarter to come in between $8 billion and $8.2 billion, raising the low end of its previous estimates thanks to strong sales of flash memory chips. Intel was up 73 cents, at $28.14.

Other Indicators

* The New York Stock Exchange composite index rose 47.17, to 6503.88; the American Stock Exchange index rose 6.05, to 1201.19; and the Russell 2000 index of smaller-company stocks rose 5.31, to 567.75.

* Advancing issues outnumbered declining ones by 2 to 1 on the NYSE and the Nasdaq Stock Market. NYSE trading volume fell to 1.11 billion shares, from 1.23 billion on Thursday, and Nasdaq volume totaled 1.4 billion, down from 1.49 billion.

* The price of the Treasury's 10-year note fell $4.38 per $1,000 invested, and its yield rose to 4.78 percent, from 4.72 percent on Thursday.

* The dollar rose against the Japanese yen and fell against the euro. In late New York trading, a dollar bought 111.00 yen, up from 110.84 late Thursday, and a euro bought $1.2296, up from $1.2219.

* Gold for current delivery rose to $390.90 a troy ounce, from $388.10 on Thursday, on the New York Mercantile Exchange's Commodity Exchange.