Stocks close volatile week mixed as oil continues to drop

NEW YORK -- Stocks closed mixed Friday after playing out a now familiar scenario: Upbeat sentiment about falling oil prices flagged amid onging concerns about weak credit markets and the economy. The major indexes also turned in a mixed performance after another volatile week in the market.

Investors were encouraged early in the session as oil's pullback lifted the outlook for consumer companies and eased concerns that record-high energy prices would force Americans to curb spending. Light, sweet crude dropped $1.24 to settle at $113.77 a barrel on the New York Mercantile Exchange, and earlier traded as low as $111.34, its lowest level in more than three months.

Oil fell on a growing sense that economies around the world are joining the U.S. in a slowdown. The rising dollar, which is gaining strength on economic concerns, contributed to the sell-off in crude and other commodities. Crude is down more than $35 from its July 11 record of $147.27; meanwhile, gold prices that swept past $1,000 an ounce earlier this year are now below $800.

While the decline in oil was placating investors this week, it still did not offset their ever-present anxiety over the slumping housing and credit markets. Concerns about more write-downs at investment banks continued through the week, causing major market indexes to fluctuate.

"With some of this sharp price collapse in commodities you would think the market would be up a lot more," said Greg Church, chief investment officer of Church Capital Management. "The underlying factor is that credit continues to appear to be very weak."

The Dow Jones industrial average rose 43.97, or 0.38%, to 11,659.90.

Broader indexes were narrowly mixed. The Standard & Poor's 500 index rose 5.26, or 0.41%, to 1,298.20, while the Nasdaq composite index fell 1.15, or 0.05%, to 2,452.52.

For the week, the Dow finished down 0.63% and the S&P 500 rose a modest 0.15%. The Nasdaq, however, logged its fifth-straight weekly gain by finishing the week up 1.59%; it has risen 8.5% since mid-July.