Stocks Fumble for Direction

Updated from 11:09 a.m. EST

Stocks on Wall Street were trading around the baseline during Friday's abbreviated trading session.

Traders were closely eyeing the retailers as shoppers flocked to stores to kick off the winter shopping season. In an annual ritual known as "Black Friday," stores attempt to lure customers, many of whom have the day off for Thanksgiving weekend, into their stores with preliminary holiday sales.

The Dow Jones Industrial Average was lately flat at 8727, and the S&P 500 was losing 2.8 points at 885. The Nasdaq gave back 15 points to 1517.

On Wednesday, the three major indices rallied in the face of numerous discouraging economic reports. During that session, President-elect Barack Obama named to his economic team former Federal Reserve Chairman Paul Volcker. The upside finish marked the fourth straight day of gains for the Dow and the S&P 500.

U.S. markets were closed on Thursday for Thanksgiving.

"Basically the Thanksgiving holiday allowed the market to hit the pause button for a little bit, which I think was much needed," said Kenneth Roberts, CFP, principal at Harbor Lights Financial in New Jersey. He said that Friday's trading will be marked by light volume as many traders take the day off.

Roberts also said that analysts will be looking for the impact of Black Friday sales on the retailers. On whether the recent gains in the major averages could be the beginning of a year-end rally, Roberts said that as unemployment takes hold, consumers are going to continue to cut back on purchases.