The third major recall by Mattel of lead-tainted Chinese toys has left the world’s largest toymaker fighting to maintain its reputation with the crucial holiday season fast approaching.

A sharp drop in oil prices gave Wall Street a modest relief rally today, with stocks edging higher on news that oil production had soared during the month of September.

Investors, shifting their focus from the economy to a possible second-half profit slump, sent technology and small-cap stocks sharply lower today, moving Wall Street toward another losing week.

Wall Street was unable to shake its malaise over interest rates today, closing mixed despite a rally in technology stocks and a series of upbeat earnings reports from companies, including 3M and Eli Lilly. The Nasdaq composite index broke a four-day losing streak.

Investors left stocks in limbo today, making few commitments while they awaited Federal Reserve Chairman Alan Greenspan’s testimony before Congress later this week.