Dow up sharply

Wall Street ended a volatile and unusual week on a strong note today, with the Dow Jones industrials gaining more than 146 points on the trength of a positive job creation report and a sharp drop in oil prices.

As European markets surged higher one day after the deadly terrorist bombings in London, Wall Street welcomed the Labour 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% from 5.1% in May, and hourly earnings rose 0.2%.

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.

“I think the shock of 60 dollar (a barrel) oil has worn off and the market is focusing on the jobs report,” said Russ Koesterich, senior portfolio manager at Barclays Global Investments in San Francisco.

“It’s also encouraging that you’ve had resiliency in the face of both terrorism and oil prices.”

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

Broader stock indicators also moved sharply higher.

The Nasdaq composite index climbed 37.22, or 1.79%, to 2,112.88, its best showing since January 3.

The Standard & Poor’s 500 index was up 13.99, or 1.17%, at 1,211.86.