Oil Reversal Stymies Rally

Market ends up 57 points, down from 185-point rally
By Nick McMaster,  Newser Staff
Posted Jun 12, 2008 3:45 PM CDT
In this Nov 7, 2007, file photo, a pumping unit sucks crude oil from the ground near Manhattan, Kan.    (AP Photo/Charlie Riedel, file)
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(Newser) – 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.