Stocks fizzle after the Fourth

NEW YORK (CNNMoney.com) -- Stocks seesawed in early trade Thursday as investors digested higher oil prices and the latest deal news ahead of the government's closely watched employment report.

The Dow Jones industrial average (down 20.32 to 13,556.98, Charts) was down 0.1 percent an hour into the session.

The tech-heavy Nasdaq composite index (up 4.32 to 2,649.27, Charts) added 0.2 percent, while the broader Standard & Poor's 500 index (up 0.51 to 1,525.38, Charts) hovered near breakeven.

All three major gauges were higher Monday and Tuesday, ahead of the July 4 holiday. Financial markets were closed Wednesday for Independence Day.

The latest deal news came late Tuesday, when private equity firm Blackstone Group (up $0.92 to $30.64, Charts) said it was buying Hilton Hotels (up $9.35 to $45.40, Charts, Fortune 500) in a deal valued at $26 billion. Shares of the hotel chain jumped 26 percent, while rivals Marriott International (up $2.76 to $47.22, Charts, Fortune 500) and Starwood Hotels (up $5.02 to $74.15, Charts, Fortune 500) were also over 6 percent higher.

Jones Apparel Group (up $0.19 to $28.59, Charts, Fortune 500) said it received an unsolicited bid from Fast Retailing Co. (Charts) to acquire Barneys New York (Charts) for $900 million.

Private equity firm Apollo Management unveiled a $6 billion bid proposal for Huntsman Corp. (up $2.94 to $27.34, Charts, Fortune 500), sending shares of the the chemical company up 12 percent.

And Coca-Cola (down $0.19 to $52.71, Charts, Fortune 500) said Wednesday it is evaluating whether to make a bid for Snapple, the iced tea division owned by British drinks company Cadbury Schweppes (up $0.23 to $54.03, Charts).

In other corporate news, Kohlberg Kravis Roberts announced plans late Tuesday for a $1.25 billion initial public offering. The filing disclosed the high-profile firm has $53.4 billion in assets under management and earned $1.11 billion in 2006.

Shares of Research In Motion (Charts) rose over 2 percent on news that the Blackberry maker scored permission to sell its handheld devices in China.

General Motors (down $1.60 to $36.38, Charts, Fortune 500) was downgraded by Bear Stearns after the automaker reported a 21 percent drop in U.S. sales in June. The sales report, which came after the close of trading Tuesday, was much weaker than forecast. Shares of GM sank nearly 4 percent and was the biggest drag on the Dow.

Of the 30 stocks in the Dow, 18 fell and 12 rose.

Market breadth was nearly even. On the New York Stock Exchange, losers edged out winners on volume of 350 million shares. On the Nasdaq, advancers were even with decliners as 450 million shares changed hands.

On the economic front, the number of initial claims for jobless aid filed last week increased by 2,000, according to the Labor Department.

The Institute for Supply Management's services index unexpectedly rose in June, beating forecasts for a modest decline.

But investors' focus may already be turned to the closely watched June jobs report slated for Friday.

Treasury prices fell in early trading, taking the yield on the 10-year note to 5.10 percent from 5.04 percent late Tuesday before the U.S. holiday.

The dollar rose against the euro and was higher versus the yen.

Oil prices gained in early trading after the EIA's report on U.S. fuel inventories. U.S. light crude rose 22 cents to $71.63 a barrel on the New York Mercantile Exchange.

In global markets, European stocks traded lower after the European Central Bank decided to hold interest rates steady and the Bank of England raised rates by a quarter percentage point to a six-year high of 5.75 percent.

Chinese stocks tumbled more than 5 percent on concerns about a flood of new shares, but other Asian markets ended the session higher.