While the figure is far stronger than May's gain of 38,000 jobs, July's gain is less than is required to bring down the nation's 9.2 percent unemployment rate.
By close of trading on Wall Street, the Dow Jones industrial average, down 145.62 points in the early going, was up 29.82 points, or 0.25 percent, to 11,896.44, ending an eight-day skid.
The Standard & Poor's 500 index added 6.29 points, 0.5 percent, to 1,260.34. The Nasdaq composite index gained 23.83 points, 0.89 percent, to 2,693.07.
On the New York Stock Exchange, 1,743 stocks advanced and 1,262 declined on a volume of 5.6 billion shares traded.
The benchmark 10-year treasury note was yielding 2.609 percent.
The euro rose to $1.4316 from Tuesday's $1.4202. Against the yen, the dollar fell to 77.04 yen from Tuesday's 77.16 yen.
In Tokyo, the Nikkei 225 index lost 2.11 percent, 207.45, to 9,637.14.
In London, the FTSE 100 index lost 2.34 percent, 133.88, to 5,584.51.
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