Reports mixed, and so are markets

Wall Street ended an erratic session little changed Thursday as strength in energy stocks offset a weak manufacturing data and a disappointing forecast from Wal-Mart Stores Inc.

Stocks found some leadership from the likes of Chevron Corp. and Exxon Mobil Corp. The big oil companies were bolstered by a five-session rally in the price of crude, which is now trading at its highest point since mid-September.

However, the markets were weighed by a disappointing reading of the Chicago Purchasing Managers index, which fell to 49.9 in November from 53.5 in October and pointed to slowing Midwest manufacturing. A reading below 50 suggests economic contraction; it was the first reading below 50 since April 2003. Investors’ concern is that the index is a precursor of the nationwide purchasing managers report to be issued Friday by the Institute for Supply Management.

Also curbing the market’s advance was Wal-Mart’s announcement that sales at stores open at least a year, an important retail benchmark known as same-store sales, would likely be flat to up just 1 percent in December. The forecast from the world’s largest retailer raised concerns about the health of consumer spending.

Analysts said some of Thursday’s trading was based on more technical factors.

“Some of what we’re seeing is a lot of people who are making a year-end play, setting themselves up for next year,” said Doug Johnston, head of U.S. trading at Boston-based Canaccord Adams. “Big investors are going to peel out the stocks that have been losers, and begin to go with the momentum trades.”

The Dow Jones industrial average fell 4.80, or 0.04 percent, to 12,221.93.

Broader stock indicators were mixed. The Standard & Poor’s 500 index rose 1.17, or 0.08 percent, to 1,400.65, and the Nasdaq composite index fell 0.46, or 0.02 percent, to 2,431.77.

Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.46 percent from 4.52 percent late Wednesday.

Stocks were also hurt by a weakening dollar, which fell against major currencies, though not against the Japanese yen. The British pound reached a 14-year high against the dollar amid the U.S. economic news and after Germany said the number of people out of work there fell below 4 million for the first time since 2002. Gold prices rose sharply.

Peter Schiff, president of Euro Pacific Capital Inc., is bearish on the stock market and contends Wall Street is treating the weakening dollar too lightly.

“I think there is some concern building internationally,” he said, referring to the state of the dollar. He cited a rise in the price of commodities such as gold, silver and oil.

Light, sweet crude was up 41 cents at $62.87 on the New York Mercantile Exchange. Prices have risen in recent days in part as inventories fell more than expected. The rise of oil, which is up about 7 percent in November, has pressured stocks, and contributed to choppy trading in recent sessions.

The Russell 2000 index of smaller companies was up 1.96, or 0.25 percent, at 786.12.

Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 1.97 billion shares.

Overseas, Japan’s Nikkei stock average closed up 1.23 percent. Britain’s FTSE 100 closed down 0.59 percent, while Germany’s DAX index was down 0.86 percent, and France’s CAC-40 fell 1.00 percent.