Erratic session for US stocks

Wall Street ended an erratic session little changed today 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 and Exxon Mobil. 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 down 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 tomorrow by the Institute for Supply Management.

Also weighing on the market 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% in December.

The forecast from the world’s largest retailer raised concerns about the health of US consume spending.

Analysts said some of today’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 US 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%, to 12,221.93.

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