Oil Reversal Stymies Rally

A stock rally lost steam after oil reversed an early decline and finished up slightly at $136.74 a barrel, Marketwatch reports. Investors had earlier turned bullish on an unexpectedly strong retail report and crude prices of $131.55. The Dow ended up 57.81 points, at 12,141.58, after being up 185 points earlier. The Nasdaq climbed 10.34 points to 2,404.35, and the S&P 500 climbed 4.38 points to 1,339.87.

Before the rebound in oil prices, things looked rosy. The Commerce Department reported a 1% increase in retail sales in May, a half-percentage point better than forecast. Among financials, Citigroup rose on the news it would close one of its hedge funds, though Lehman fell after announcing an executive housecleaning. (More NASDAQ stories.)