Wall Street Fluctuates As Energy Prices Increase

TIM PARADIS

NEW YORK (AP) — Investors shuttled between worries about the housing industry and hopes that the U.S. economy might be stabilizing.

Stocks fluctuated in a narrow range Thursday, falling after a twin dose of disappointing housing news but also drawing support from crude oil's advance to a six-month high above $64 a barrel. Investors saw a bigger appetite for oil, as well as a dip in weekly unemployment claims and an increase in sales of big-ticket manufactured goods, as reasons to believe the economy will start growing and lift demand for raw materials.

The government said sales of new homes edged up only 0.3 percent in April, less than analysts expected. A separate report showed that a record 12 percent of mortgage holders were behind or in foreclosure in the first quarter.

Investors also looked for insights into the prospects for General Motors Corp., which said a committee of bondholders agreed to a sweetened deal to erase some of the automaker's unsecured debt in exchange for stock. The agreement may not prevent GM from seeking bankruptcy court protection, but investors are eager for any signs that a reorganization would be orderly. GM shares rose 8 cents, or 6.9 percent, to $1.23.