WALL STREET : Bulls Struggle Against Uptick Jobless Claims

DJIA Ekes Out a Win, Despite JPMorgan's 2.8% Drop

It was another iffy session for U.S. equities, with stocks wobbling around the breakeven line throughout the session. Lackluster economic data set a bearish tone in early trading, as traders reacted to an unexpected rise in weekly initial jobless claims. Additionally, the core producer price index (PPI) rose 0.3% last month, narrowly exceeding consensus expectations -- and reigniting lingering inflation concerns. The financial sector was also a drag, after Goldman Sachs (GS) was accused of misleading both investors and legislators during its 2010 testimony to Congress about the financial crisis. However, with corporate heavyweights Google (GOOG) and Bank of America (BAC) still scheduled to take the earnings stage before the weekend -- and with earnings season ramping into high gear next week -- traders seemed unwilling to make any drastic moves today, leaving the major market indexes not far from where they started the session.

The Dow Jones Industrial Average (DJIA – 12,285.15) was down 107 points at its session low, but elbowed its way to a positive finish, tacking on 14.2 points, or 0.1%, by the time the closing bell sounded.

The blue-chip barometer found an intraday floor near its 50-day moving average, which eventually propelled the index back above support at its 20-day trendline and the 12,250 level. Seventeen of the Dow's 30 components ended higher, with Kraft Foods (KFT) and Coca-Cola (KO) leading the charge. JPMorgan Chase (JPM) paced the 12 declining Dow members, shedding 2.8% despite a pair of post-earnings price-target hikes. Finally, aluminum giant Alcoa (AA) split the difference by finishing flat.

Meanwhile, the S&P 500 Index (SPX – 1,314.52) ended in the black by the slimmest of margins, rising just 0.1 point by the end of the day. Nevertheless, the SPX notched its third straight daily finish below its 50-day moving average.

Finally, the Nasdaq Composite (COMP – 2,760.22) couldn't quite battle its way above breakeven, settling for a slim daily deficit of 1.3 points, or 0.05%. On the plus side, the COMP closed above both its 20-day and 50-day moving averages.

May Crude Oil Close Higher On Short Coverings
Crude futures reversed early losses to end higher today, as an ailing greenback lured foreign-currency holders to the dollar-denominated commodity. In energy markets, oil prices have pulled back considerably this week, but still remain more than 25% higher than their lowest settlement price in 2011. In addition, news that a small fire caused Sunoco (SUN) to shutter a gasoline-producing unit at its Philadelphia-area refinery also served as a boon for black gold. May-dated crude futures closed the session on a respectable gain of $1.36, or 1.27%, at $108.77 per barrel.

Quotes ....."The start of the week was far rockier, however, with oil prices shaving almost 6% from Friday’s level. After the drop, people are buying back into the market,” said an oil dealer.

With the losses, “overbought pressures have been substantially reduced, and prices are in a much better position to carry on to the upside after effectively relieving a good deal of steam,”

analysts at Capital Oil wrote in a note to clients.