Stocks scratch out some gains

NEW YORK (CNNMoney.com) -- The Nasdaq composite and S&P 500 managed to carve out fresh multi-year highs Tuesday, but a surge in oil prices limited any bigger stock market gains in light trading ahead of Thanksgiving.

The Dow Jones industrial average (up 6.17 to 12,322.71, Charts) added a few points, according to early tallies. The broader S&P 500 (up 2.16 to 1,402.66, Charts) index added nearly 0.2 percent, closing at a fresh six-year high.

The Nasdaq composite (up 0.58 to 2,453.30, Charts) inched higher, closing at its highest level since February 2001.

A choppy session found a little upward momentum near the close. But gains were limited.

Treasury prices inched higher, lowering the corresponding yields. Oil prices rose.

Here's a look at what was moving near the close.

All three major gauges struggled on both sides of unchanged throughout the session, as investors reacted to the rise in oil prices and geared up for the Thanksgiving holiday. All financial markets are closed Thursday and financial markets close early Friday.

"People are holding their breath a bit this week, ahead of the holiday and ahead of Black Friday," said Russell Lundeberg, Jr., chief investment officer at Barrett Capital Management. He was referring to the critical day after Thanksgiving, the start of the holiday retail sales period.

Stocks were also jittery in the aftermath of the most recent leg of the rally. The Dow rose for six sessions in a row, pushing to a new record high, before retreating Monday. The S&P 500 also stalled out after hitting a 6-year high last week.

Lundeberg said that stocks will likely have more direction next week, as Wall Streeters return from vacations and as retailers give fuller reports about Black Friday and the weekend.

December should be another positive month for stocks, said William Hummer, principal at Wayne Hummer Investments, since the major underlying factors that have supported the advance since the summer are still in place.

They include bullish corporate earnings, a Federal Reserve that seems to have halted its rate-hiking campaign, lower oil prices, and a sense that the economy is slowing, but not heading for a recession.

"I think the combination of these factors, as well as the tendency for December to be seasonally strong means we should see continued gains through the end of the year," Hummer said.

The fact that some investors and market watchers are skeptical of the rally's legs and have been calling for a correction is another point in the bulls' favor, Hummer said. That skepticism allows the market to keep moving higher, he said.

Gyrations in the oil market had a mixed impact on stocks Tuesday. Higher oil prices raise worries about inflation and consumer spending. However, the rise in oil prices also serves to boost oil services stocks, which in turn helps the overall market.

The Amex Oil (up 19.77 to 1,171.65, Charts) index added 1.2 percent thanks to strength in components such as Exxon Mobil (up $1.04 to $73.47, Charts) and Valero Energy (up $1.36 to $53.10, Charts).

A run up in gold and silver prices gave a boost to stocks in those sectors, with the Amex Gold Bugs (up $12.04 to $329.89, Charts) index adding over 3 percent.

Among other movers Tuesday, Dow component Boeing (up $1.90 to $91.02, Charts) rose on news that it has received a $5.5 billion order from Korean Air.

Fellow Dow stock Verizon Communications (up $0.46 to $35.13, Charts) rose after Credit Suisse First Boston upgraded it to "outperform" from "neutral," according to Reuters.

Alcoa (up $0.69 to $29.16, Charts) and Caterpillar (up $1.38 to $62.29, Charts) were the Dow's other main gainers.

Google (up $14.64 to $509.69, Charts) shares rose 2.5 percent, sending the search engine leader past $500 for the first time ever.

Medtronic (up $4.81 to $53.76, Charts) shares rose over 9 percent in unusually active New York Stock Exchange trading. The maker of medical devices reported higher than expected quarterly earnings late Monday, sparking a number of upbeat analyst comments Tuesday.

Dell (up $0.15 to $24.80, Charts) crept higher ahead of its quarterly earnings report, which is due after the close Tuesday. Earnings were initially expected last week, but were delayed because of an accounting probe.

Apple (up $2.09 to $88.56, Charts) flirted with a record high as investors expressed optimism about the strength of the company's iPod sales in the crucial holiday period.

Intel (down $0.71 to $21.56, Charts) and Broadcom (down $1.00 to $36.00, Charts) both slipped after helping to lead the chip sector higher over the last few sessions.

Shares of Dow stock General Motors (down $1.39 to $32.79, Charts) slipped after Troy Clarke, the automaker's president for North America, said the company's restructuring was not yet finished. Clarke's comments were part of a prepared speech to be given to the Detroit Automotive Press Association.

Market breadth was mixed and volume was moderate. On the New York Stock Exchange, winners topped losers three to two on volume of 950 million shares. On the Nasdaq, decliners and advancers were roughly even as 1.1 billion shares changed hands.

U.S. light crude oil for January delivery rose $1.15 to $59.95 a barrel on the New York Mercantile Exchange.

Investors also paid attention to morning comments from Federal Reserve Governor Kevin Warsh, who told the New York Stock Exchange that although inflation has moderated, it remains "uncomfortably elevated."

Treasury bond prices inched higher, lowering the yield on the ten-year note to about 4.58 percent from roughly 4.59 percent late Monday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar was little changed versus the yen and euro.

COMEX gold gained $6.40 to $628.50 an ounce.

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