Stocks capped a week of huge gains with a sizable advance today after Wall Street set aside some anxiety over news that the economy lost jobs last month and focused on Microsoft Corp.’s bid for Internet company Yahoo Inc. and a possible rescue plan for the troubled bond insurance sector.

Stocks fluctuated at times during the session, however, as investors weighed seemingly contradictory readings on the economy. Wall Street was pleased by Microsoft’s $44.6 billion bid for Yahoo. Merger news, which often energizes stocks, has been in short supply for months.

But a mix of economic news reminded investors of the continuing fallout from the housing and mortgage crisis and made for somewhat volatile trading.

According to preliminary calculations, the Dow Jones industrial average rose 92.83, or 0.73%, to 12,743.19 after climbing more than 200 points yesterday.

Broader stock indicators also rose. The Standard & Poor’s 500 index rose 16.85, or 1.22%, to 1,395.40, and the Nasdaq composite index advanced 23.50, or 0.98%, to 2,413.36.