Stocks end mixed as oil prices recede

The stock market finished mixed Monday as oil prices ended lower after setting a trading record about a dime short of $140 a barrel.

Shares were mostly lower for much of the session after crude futures leaped early in the day and a downbeat early sign of the state of manufacturing in June touched off concerns about the ability of the economy to push ahead.

The Federal Reserve Bank of New York reported that its monthly survey of manufacturers in New York state indicated the sector weakened further this month.

But stocks rebounded as oil retreated. And shares of financial companies were among the biggest gainers after the chief executive of Lehman Bros. Holdings expressed confidence in the investment bank and its balance sheet.

The Dow Jones industrial average fell 38.27 points, or 0.3%, to 12,269.08 after being down more than 95 points early in the session.

The Standard & Poor’s 500 index edged up 0.11 of a point to 1,360.14, but the technology-dominated Nasdaq composite index rose 20.28 points, or 0.8%, to 2,474.78.

And the Russell 2,000 index of smaller companies jumped 7.13 points, or 1%, to 740.74.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange. Volume was light.

Treasury yields were up on worries that inflation would erode returns. The yield on the benchmark 10-year Treasury note rose to 4.27% from 4.26% late Friday. The dollar was mixed against other major currencies, while gold prices rose.

Oil futures rose as high as $139.89 a barrel in New York before pulling back to settle at $134.61, down 25 cents for the day. Meanwhile, the U.S. average retail price of gasoline rose to a record $4.08 a gallon.

In the financial sector, Lehman posted a second-quarter loss of $2.87 billion, matching a forecast that caused its stock to tumble last week.

The report’s details seemed to lessen concerns about the ability of financial firms to extricate themselves from bad bets on mortgage debt.

Lehman shares jumped $1.39, or 4.5%, to $27.20 but remained 39% below their April 30 close.

Financial stocks in the S&P; 500 gained 1.1%, marking their third increase in a row. Goldman Sachs Group climbed $3.80, or 2.1%, to $182.09. Morgan Stanley added $1.25, or 3%, to $42.29.

In other market highlights:

Chiquita Brands International plunged $6.68, or 29%, to $16.65 after higher costs led the fruit producer to forecast a third-quarter loss. Wall Street had expected a profit.

Apple rose $4.47, or 2.6%, to $176.84 after an RBC Capital Markets analyst predicted the company would ship 5.1 million iPhones next quarter to boost profit, nearly five times the volume of a year ago.

Irvine-based Broadcom added 97 cents, or 3.8%, to $26.76 after the U.S. International Trade Commission cleared the chip maker of two claims of patent infringement by SiRF Technology Holdings. But SiRF also rose, climbing 7 cents, or 1.1%, to $6.44.

Sirius Satellite Radio rose 8 cents, or 3.2%, to $2.62 after the chairman of the Federal Communications Commission said he would back the satellite radio firm’s deal to combine with XM Satellite Radio. XM gained 43 cents, or 4%, to $11.30.

Teva Pharmaceutical Industries rose $2.23, or 5.2%, to $44.73. The drug maker said trial data showed its Parkinson’s disease drug Azilect could slow the progression of the disease.

GameStop jumped $3.43, or 7.7%, to $47.94 after Goldman Sachs upgraded the video game retailer to “neutral.”

Overseas, key stock indexes fell 0.5% in Germany and France and 0.1% in Britain. Shares in Japan surged 2.7%.