Stocks managed gains Thursday amid fluctuating oil prices, a strong U.S. retail sales report for May, and news that a $46 billion bid for Anheuser-Busch could happen while a Yahoo-Microsoft merger is not likely. Stocks gained strongly in the morning, while oil prices were down more than $4 a barrel. But by the afternoon, oil prices turned higher and stocks declined. The Yahoo-Microsoft news also affected stocks' upward momentum. In economic news, U.S. retail sales jumped 1 percent in May, largely due to the government's economic stimulus checks. Retail sales rose 0.4 percent in April. Meanwhile, the number of Americans filing new claims for jobless benefits jumped 25,000 last week to the highest level since March. Light sweet crude oil for July delivery rose 36 cents to $136.74 a barrel on the New York Mercantile Exchange, erasing big morning losses. U.S. average retail gasoline prices rose to a record $4.06 a gallon (3.8 liters). The U.S. dollar rose versus the euro and the yen. In merger news, Anheuser-Busch said late Wednesday that Belgian rival InBev has made a $46 billion offer for the brewer, confirming earlier speculation that a merger was possible. Troubled investment bank Lehman Brothers announced it was replacing two top executives, including its chief financial officer, just days after announcing a huge $2.8 billion quarterly loss. The Dow Jones industrial average rose 57.81, or 0.5 percent, to 12,141.58. Financial shares gained, including AIG, Bank of America, and Citigroup. The broader Standard & Poor's 500 index rose 4.38, or 0.3 percent, to 1,339.87. The technology-heavy Nasdaq composite index rose 10.34, or 0.4 percent, to 2,404.35. Yahoo shares plunged 12 percent in active trading on afternoon reports that its talks with Microsoft have ended without a deal. The New York Stock Exchange composite index was little changed, rising 6.45 to 8,947.72. The American Stock Exchange composite index fell 18.87 to 2,293.54. And the Russell 2000 index rose 1.96 to 719.84.
