Wall Street ended a volatile and unusual week on a bullish note Friday, with the Dow Jones industrials gaining nearly 147 points on the strength of a positive employment report and a sharp drop in oil prices.

As European markets rose on the day after the terrorist bombings in London, Wall Street welcomed the Labor Department's jobs report. While the 146,000 jobs created in June were less than the 195,000 economists hoped for, the unemployment rate fell to 5 percent from 5.1 percent in May, and hourly earnings rose 0.2 percent.

Combined with falling oil prices, the employment news was enough to encourage Wall Street's two main camps. Those who fear inflation were happy with only a modest rise in job growth and wages, while those worried about a severe slowdown in the economy could point to another sign of steady, if slower, growth.

The Dow rose 146.85, or 1.43 percent, to 10,449.14.

Broader stock indicators also moved sharply higher. The Nasdaq composite index climbed 37.22, or 1.79 percent, to 2112.88, its highest level since Jan. 3. The Standard & Poor's 500-stock index was up 13.99, or 1.17 percent, at 1211.86.

As stocks rose, bond prices fell. The price of a 10-year Treasury dropped $2.50 per $1,000, while the yield rose from 4.06 percent late Thursday to 4.11 percent.

The dollar gained against other major currencies, and gold prices fell.

Worries over oil dominated stock trading in the first part of the holiday-shortened week, with oil prices setting new record highs. Oil prices moved lower Friday in afternoon trading after rising past $61 a barrel as Hurricane Dennis threatened oil rigs and refineries in Florida and the Gulf of Mexico. A barrel of light crude settled at $59.63, down $1.10, on the New York Mercantile Exchange.

The Dow gained 1.41 percent for the week, while the S&P was up 1.46 percent and the Nasdaq surged 2.7 percent.

Next week will bring the first big wave of earnings reports, including Apple Computer and General Electric.

Movers

Alcoa rose $1.11, to $27.20. It reported second-quarter profit up 14 percent.

Accenture rose $2.01, to $24.21, after reporting a strong rise in second-quarter profit and surpassed analysts' expectations by 8 cents a share.

Siebel Systems fell 20 cents, to $8.59. The business software maker said second-quarter revenue would be lower than expected.

Polo Ralph Lauren rose $3.87, to close at $47.34. The clothing company raised its earnings forecasts for the first quarter based on stronger-than-expected margins.

Indexes

New York Stock Exchange composite index rose 76.01, to 7330.58.

American Stock Exchange index rose 14.05, to 1561.01.

Russell 2000 index of smaller-company stocks rose 12.84, to 662.14.

Volume

NYSE: 1.91 billion shares, down from 1.95 billion on Thursday. Advancers outnumbered decliners 3 to 1.

Nasdaq: 1.67 billion shares, up from 1.6 billion. Advancers outnumbered decliners 8 to 3.

Commodities

Crude oil for August delivery: $59.63, down $1.10.

Gold for current delivery: $422.90 a troy ounce, down from $423.30 on Thursday.