Stocks fluctuate as April retail sales reports arrive

By MADLEN READ

NEW YORK

Wall Street wavered Thursday as investors sifted through sales figures from retailers that were generally not as gloomy as anticipated, but that still suggested that rising costs are causing consumers to alter their spending.

Wal-Mart Stores Inc., for one, said sales of groceries, flat-screen TVs and medications helped boost sales last month at stores open for at least a year by 3.2 percent. But some apparel stores, whose merchandise falls into the category of discretionary items, continue to see depressed sales, with consumers budgeting more for gasoline and food.

The retail sales readings come a day after soaring oil prices knocked the Dow Jones industrial average down more than 200 points. On the New York Mercantile Exchange, crude dipped 18 cents to $123.35 a barrel, after reaching a record of nearly $124 late Wednesday in electronic trading.

Another factor weighing on consumers has been the job market -- the United States has seen four straight months of net jobs losses. However, in a positive sign, the Labor Department said Thursday the number of newly laid off workers seeking unemployment benefits dropped by 18,000 last week to 365,000, a larger decline than expected.

The Dow rose 11.81, or 0.09 percent, to 12,826.16.

Broader stock indicators were lower. The Standard & Poor's 500 index fell 0.10, or 0.01 percent, to 1,392.47, and the Nasdaq composite index fell 0.26, or 0.01 percent, to 2,438.23.

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.83 percent from 3.85 percent late Wednesday.

Retailers' figures come in following worrisome results from Toyota Motor Corp., which said late Wednesday that profit in the January-to-March period tumbled 28 percent due to the rising yen and weak North American sales. The Japanese automaker also predicted sales will drop for the fiscal year through March 2009 for the first time in several years, and profit will fall 27 percent.

Toyota's U.S.-traded shares fell $4.72, or 4.5 percent, to $100.04.

In other earnings news, American International Group is scheduled to release its first-quarter results after the close of trading. Analysts expect the insurer to post a loss. AIG shares fell 48 cents to $44.60 ahead of the report.

Gold prices rose, while the dollar climbed against most other major global currencies.

The European Central Bank left its interest rates unchanged Thursday, and ECB President Jean-Claude Trichet pointed to clear upside risks to price stability, indicating that the central bank is unlikely to lower its rates in the near future.

The Russell 2000 index fell 1.77, or 0.25 percent, to 714.44.

Advancing issues narrowly outnumbered decliners by about 7 to 6 on the New York Stock Exchange, where volume came to 220.9 million shares.

In overseas trading, Japan's stock market fell 1.13 percent. By afternoon in Europe, Britain's FTSE index fell 0.21 percent, Germany's DAX index fell 0.61 percent, and France's CAC-40 fell 0.54 percent.

------

On the Net:

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com