Updated from 4:04 p.m. ESTStocks closed narrowly mixed Thursday, as higher oil prices and an earnings disappointment at Dow-component Caterpillar ( CAT) helped stall a two-day rally. The Dow Jones Industrial Average closed down 31.19 points, or 0.3%, at 10,467.40, having come close to the break-even level in the late morning. The S&P 500 rose 0.48 points, or 0.04%, to 1174.55, while the Nasdaq added 1.06 points, or 0.05%, to 2047.15. The 10-year Treasury note was down 8/32 in price to yield 4.23%, while the dollar was higher against the yen and euro. Volume on the New York Stock Exchange was 1.60 billion shares, with advancers beating decliners by a ratio of 9-to-7. Volume on the Nasdaq was 2.10 billion shares, with decliners narrowly outpacing advancers 15-to-14. Oil prices rose as cold weather continued to be a factor in the Northeast. In Nymex floor trading, the benchmark March crude futures contract closed up 6 cents to $48.84 a barrel, having floated above the $49 level for most of the trading session. The Dow was eaten up by Caterpillar, which reported fourth-quarter net income of $551 million, or $1.55 a share, on revenue of $8.57 billion, a 34% increase from last year. The Thomson First Call consensus called for earnings of $1.63 a share on revenue of $7.59 billion. Shares fell $4.60, or 5%, to $86.52. Most other earnings reports were stronger, including Nokia's ( NOK), which despite reporting a 17% decline in fourth-quarter earnings still posted a profit that far surpassed analyst expectations. The Finnish cell-phone giant earned $1.3 billion, or about 30 cents a share, on a 3.1% jump in revenue to $11.8 billion. Analysts were forecasting earnings of 23 cents a share on revenue of $10.7 billion. For the current quarter, Nokia forecast earnings of 17 cents to 21 cents a share on revenue of $9.14 billion to $9.5 billion, compared with estimates of 18 cents a share on revenue of $8.7 billion. The stock rose 89 cents, or 6.2%, to $15.22. "Earnings haven't been the problem," said Joe Liro, equity strategist with Stone & McCarthy Research Associates. "The earnings news has been as expected or even a little better. The two biggest problems here are uncertainty with respect to the election in Iraq, and, I think, money flows have been much below a typical January. People have been on the defensive regarding the OPEC. It's been very disappointing." Both of those events take place on Jan. 30. Worries about violence around the Iraqi elections are a major concern, while speculation about whether the cartel will again cut production has also been a factor in the direction of oil prices. Also reporting big earnings upside was Textron ( TXT), which said fourth-quarter profit rose 20% from a year ago to $125 million, or 89 cents a share. Earnings from continuing operations of $1.10 a share were 5 cents above estimates. Shares added $1.08, or 1.5%, to $71.16.