Markets close mixed after a retail report

NEW YORK (AP) — Wall Street turned in a mixed performance yesterday after a fresh report on retail sales and a new oil price record gave investors the same refrain: The economy is hurting and costs are rising, but things could be worse.

The Commerce Department’s latest report showed that retail sales fell by 0.2 percent last month, as expected. The data did show better-than-expected sales if automobiles are excluded, but indicated Americans are reluctant to make big-ticket purchases — especially as soaring fuel prices cut into demand.

Oil prices, meanwhile, spiked to a trading record of $126.98 a barrel on the New York Mercantile Exchange after Iranian news services reported Iran is considering a cut to output. They later settled up $1.57 at $125.80.

The Dow Jones Industrial Average fell 44.13, or 0.34 percent, to 12,832.18, having soared 130 points Monday.

Broader indexes closed mixed. The Standard & Poor’s 500 Index fell 0.54, or 0.04 percent, to 1,403.04, and the Nasdaq Composite Index rose 6.63, or 0.27 percent, to 2,495.12.

The technology-heavy Nasdaq got a boost as Yahoo Inc. rose after CNBC reported billionaire investor Carl Icahn was considering a proxy fight to try to push Yahoo back into merger discussions with Microsoft Corp.

Yahoo rose $1.30, or 5.2 percent, to $26.56.

Government bond prices fell as the Treasury market focused on the better-than-expected details in the retail sales report. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.90 percent from 3.80 percent late Monday.

Office supply retailer Staples Inc. raised its hostile bid to acquire Dutch rival Corporate Express NL by 10 percent. Corporate Express said it is willing to consider the deal, and Staples rose 48 cents, or 2.2 percent, to $22.44.

And investors got another read on the consumer after Wal-Mart Stores Inc., the world’s largest retailer, reported first-quarter profit above Wall Street predictions but also forecast the current quarter will come in below expectations.

Wal-Mart fell $1.37, or 2.4 percent, to $56.65.

Luxury home builder Toll Brothers Inc. said its preliminary results show home-building revenue fell 30 percent in its fiscal second quarter amid a weak spring selling season. The company also expects continued “challenging times,” given soft conditions in most markets. Shares shed 10 cents to total $22.97.