Market mixed on retail, oil news

NEW YORK — Wall Street turned in a
mixed performance today after a fresh report on retail sales and a new
oil price record told investors the same old story: The economy is
hurting and costs are rising, but things could be worse.

The Commerce Department’s latest report showed that retail sales
fell by 0.2 percent in April, as expected. The data did show
better-than-expected sales if automobiles are excluded but indicated
that Americans are reluctant to make big-ticket purchases — especially
as soaring fuel prices cut into demand.

“The numbers are coming out weak, but the economy’s not falling
apart,” said Alexander Paris, economist and market analyst for
Chicago-based Barrington Research.

Oil prices, meanwhile, spiked to a trading record of $126.98 a
barrel on the New York Mercantile Exchange after Iranian news services
reported that Iran is considering cutting output. They later settled up
$1.57 at $125.80.

Today’s wavering trading in the stock market reflected its ongoing
uncertainty about the economy. Brian Gendreau, investment strategist
for ING Investment Management, believes that investors won’t get a
clear picture until more data are released in June and July.

“We’re going to go through a period where the markets are going to
focus on the macro-data and any adverse piece of news about the credit
markets,” he said. “It will be a trendless market until the
uncertainties about a contraction in economic activity are resolved.”

According to Federal Reserve Chairman Ben Bernanke, turmoil in
financial markets has eased somewhat. He noted during his speech in
Atlanta that the markets for certain mortgage-backed securities, such
as those backed by Fannie Mae and Freddie Mac, as well as some
fixed-rate mortgages and corporate debt have improved. He did say,
though, that the situation remains “far from normal.”

The Dow Jones industrial average fell 44.13, or 0.34 percent, to
12,832.18. The Standard & Poor’s 500 index fell 0.54, or 0.04
percent, to 1,403.04, and the Nasdaq composite index rose 6.63, or 0.27
percent, to 2,495.12.

The Nasdaq got a boost as Yahoo Inc. rose after CNBC said that
investor Carl Icahn was considering a proxy fight to try to push Yahoo
back into merger talks with Microsoft Corp. Yahoo rose $1.30, or 5.2
percent, to $26.56

source:news.yahoo.com