U.S. stocks closed higher Friday, amid gains in oil prices, after the headline figure in the April employment report missed expectations. The major averages reclaimed opening losses to close near session highs, with the Dow Jones industrial average up nearly 80 points and the S&P 500 up slightly as materials led most sectors higher while utilities lagged. (Tweet This) However, both indexes posted slight weekly declines for their first two-week losing streak since the one ended Feb. 12. The Nasdaq composite fell 0.8 percent for the week for its first three-week losing streak since the one ended Jan. 15.

"Basically the market was oversold, due for a bounce," said Lance Roberts, chief investment strategist at Clarity Financial. "You've got oil prices rallying. You've got the Fed on hold with the data as weak as it is," he said, noting he doesn't expect the U.S. central bank to raise rates until next year. New York Fed President William C. Dudley said in a New York Times article Friday the jobs report was perhaps softer than expectations but gave it little weight in affecting his economic outlook. He added in the piece that two hikes this year remained a "reasonable expectation."

Read MoreSay goodbye to job growth of 200,000 a month "Today's report was kind of a fun one for a few minutes and after that the excitement dissipated," said Todd Hedtke, chief investment officer at Allianz Investment Management (AIM) US. The U.S. dollar index initially extended losses after the jobs report, before holding mildly higher in afternoon trade. The euro was last near $1.14 and the yen at 107.09 yen against the greenback. The dollar index gained 0.8 percent for the week, its best week in more than a month. U.S. crude oil futures settled up 34 cents, or 0.77 percent, at $44.66 a barrel, but down 2.7 percent for the week, ending a four-week win streak. The weekly oil rig count fell by 4 for a decline of 340 rigs year-over-year, according to Baker Hughes.

"The two variables that really disappointed the U.S. equity market where the dollar and oil. The year-over-year comparisons which led to the earnings recession in the U.S. are going to be rolling out of the market soon," said Joe Seydl, economist at J.P. Morgan Private Bank.

The S&P 500 held higher for the year so far after briefly erasing gains for 2016. Both the Dow and S&P ended the week within 4 percent of their 52-week intraday highs.

The Nasdaq composite ended about 9.5 percent below its 52-week intraday high set last July. Intraday, the index fell more than 10 percent from that high, or about 5 percent off a recent high touched in April.

Apple closed more than half a percent lower. Intraday, the stock temporarily declined more than 1 percent to below its Aug. 24 intraday low and hitting a fresh 52-week intraday low going back to June 2014.

The iShares Nasdaq Biotechnology ETF (IBB) closed 1.5 percent lower. Treasury yields held higher in afternoon trade, with the 2-year yield around 0.73 percent after initially falling below 0.7 percent to its lowest since Feb. 12. The 10-year yield was higher near 1.78 percent after briefly falling to 1.705 percent, its lowest since April 11.

"I think the bottom line is this report is kind of a shoulder-shrug, not something that's going to get the Fed's attention in any meaningful way," said Gene Tannuzzo, senior portfolio manager of Columbia Threadneedle's Strategic Income Fund.

"If anything is going to get the Fed's attention it's the average hourly earnings is going to creep up a bit," he said. Read MoreThe market saw this weak jobs report coming; Goldman didn't The April nonfarm payrolls report showed creation of 160,000 jobs, well below expectations of more than 200,000 jobs. Unemployment came in at 5 percent, as expected, while average hourly wages for the month rose 0.3 percent, also in-line with expectations. The labor force participation rate fell to 62.8 percent.

"The payroll report was disappointing but what it does is raises concerns with negative corporate earnings whether companies will continue to hire," said Douglas Cote, chief market strategist at Voya Investment Management.

Stocks opened lower and struggled for gains before holding higher as the close approached.

"It is once again one of those mixed data points. Even though this is one data point, ... it has at least three interpretations," said Tara Sinclair, chief economist at Indeed. "I think it's more of the same in a lot of senses. We'd like better, but at the same time wages are better," she said. "I think the clear message that comes out of it for me is the report is bad for risk if we get weak data ... from the U.S.," said Lee Ferridge, head of macro strategy, North America, State Street Global Markets.

"My fear is that more disappointing payrolls is going to become the norm. If payroll growth slows we're not going to get a pickup in wages," he said.

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