U.S. Markets Finish Thursday Mixed As Oil Surges

August 21, 2008 5:58 p.m. EST

New York, NY (AHN) - Markets opened lower Thursday as the price of oil surged on political tension between the U.S. and Russia. However, the major indices were able to pare losses, finishing the session relatively unchanged.

The price of crude oil spiked $5.62 a barrel, settling at $121.81 on the New York Mercantile Exchange. The rally was sparked by hostile words from Russia in regard to a U.S.-Poland agreement to install a missile defense system in Eastern Europe. Russia, which supplies a vast amount of oil to the West, views the defense system as a threat.

The Dow Jones Industrial average gained 12 points or 0.1 percent. With oil rising, energy components Exxon Mobil and Chevron gained roughly 2 percent each, helping the Dow post a gain. The S&P 500 had a modest gain of 3 points or 0.25 percent.

Outside of the energy sector, none of the major economic sectors showed any real conviction on the buy or sell side. Tech stocks were the laggards on Thursday as the Nasdaq Composite posted an 8 point loss, or 0.35 percent. Big-cap tech names were weak with the Nasdaq 100 fell 6 points or 0.35 percent.

Limited Brands stood out from the crowd on Thursday. The company saw shares rise 12.9 percent to $20.28 after posting second quarter earnings that topped estimates.

In economic news, weekly unemployment data was better than expected. For the week ending Aug. 16, unemployment claims fell 13,000 to 432,000, which is less below the 440,000 economists expected.

Several retailers report quarterly earnings Thursday evening. Aeropostale Inc., Foot Locker and Gap Inc. are a few of the household names.