NEW YORK (Reuters) – Stocks pulled back from five-month highs in early trading on Wednesday, with pressure on the euro testing the view that U.S. equities were decoupling from the single currency.

Energy shares led equities lower as U.S. crude futures posted their fourth decline in five days. The S&P energy sector index (.GSPE) fell 1.1 percent and an index of oil services companies (.OSX) dropped 1 percent.

The euro fell near 16-month lows against the U.S. dollar after Fitch warned of dire consequences for the currency if the European Central Bank does not take more action.

U.S. equities have been struggling to delink from the performance of the euro, a trend that became the norm in the last quarter of 2011 as traders fretted over possible sovereign defaults in the euro zone.

Steve Goldman principal at Goldman Management in Short Hills, New Jersey, said the market was still very aware of what is happening in European debt markets, ahead of Spanish and Italian bond auctions later this week.

"U.S. markets are tethered to that, even though we still want to move higher," he said. "Even U.S. banks are diverging from the European banking system."

But the link has been weakening. The 50-day correlation between the S&P 500 e-mini futures contract and the euro crossed the zero line this week after four months of being in positive territory, indicating they were no longer on the same path.

The Dow Jones industrial average (.DJI) was down 36.21 points, or 0.29 percent, at 12,426.26. The Standard & Poor's 500 Index (.SPX) dipped 3.39 points, or 0.26 percent, at 1,288.69. The Nasdaq Composite Index (.IXIC) was off 0.83 points, or 0.03 percent, at 2,701.67.

The U.S. Federal Reserve will release its Beige Book, a summary of anecdotal information on current economic conditions around the United States, at 2 p.m. EST. The report may offer more evidence the economy's health is slowly being restored.

Supervalu Inc (SVU.N) shares dropped 10.3 percent to $7.53 after quarterly sales at the third-largest U.S. supermarket chain missed estimates.

Clothing retailer Urban Outfitters Inc (URBN.O), grappling with piled-up inventory and declining margins, said its chief executive resigned unexpectedly, sending the company's shares tumbling 18.4 percent to $23.98.

The Dow and S&P 500 hit five-month highs on Tuesday.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stocks declined Wednesday as a fall in commodity prices sparked a selloff in the energy and materials sectors and as a falling euro and high Italian bond yields kept Europe's debt crisis in focus.

Eight of 10 S&P 500 sectors were down, with energy (.GSPE) leading the way. The S&P 500 (.SPX) fell below its 50-day moving average, which may be a portent of more losses.

Italy's borrowing costs rose to a record after an auction of five-year debt, while the euro fell to an 11-month low against the dollar.

U.S. stocks have been weighed down this week in part on fears that an agreement at last week's European Union summit did not go far enough to resolve the two-year-old debt crisis.

"The main issue right now is the complete, absolute failure of the European Union to come to any kind of solution. They're back to where they started from," said Jeffrey Sica, president and chief investment officer at SICA Wealth Management in Morristown, New Jersey.

"Borrowing costs are going to rise and that's going to continue to put pressure on us. The summits they've had have taken us nowhere, and soon we're going to pay the price."

The Dow Jones industrial average (.DJI) was down 102.70 points, or 0.86 percent, at 11,852.24. The Standard & Poor's 500 Index (.SPX) took off 10.52 points, or 0.86 percent, at 1,215.21. The Nasdaq Composite Index (.IXIC) slid 39.64 points, or 1.54 percent, at 2,539.63.

The S&P energy sector (.GSPE) fell 2.5 percent as U.S. crude oil prices slid 4.2 percent to hover near $96 a barrel.

Gold dropped to its lowest level since early October as the weak euro and a shortage of dollar funding near the year-end prompted investors to sell aggressively. Commodity-related shares were further pressured by a strengthening U.S. dollar.

Investors were also disappointed the U.S. Federal Reserve made no mention of possible new stimulus measures after its Tuesday meeting.

Though a majority of economists polled by Reuters expected no more Fed action to boost the economy in the short term, another survey showed most primary dealers saw the central bank enacting some type of stimulus.

First Solar Inc (FSLR.O) tumbled 20 percent to $34 after it cut its 2011 sales and profit forecast. The maker of solar power systems joins a list of companies, including Intel Corp (INTC.O) Dupont and Co (DD.N) and Texas Instruments Inc (TXN.N), that have cut their outlooks.

An index of home builder stocks (.DJUSHB) dropped 2.4 percent after the National Association of Realtors said data on sales of previously owned homes will be revised downward because of double counting.

(Reporting by Angela Moon; additional reporting by Ryan Vlastelica)

TORONTO (Reuters) – Toronto's main stock index was higher shortly after the open on Friday as energy and gold-mining issues rose, offsetting fears that the euro zone's debt crisis was deepening after another round of poor Italian and German bond sales.

The Toronto Stock Exchange's S&P/TSX composite index was up 44.10 points, or 0.4 percent, at 11,529.42 in early trade. It opened lower at 11,483.85.

(Reporting by Jon Cook; editing by Peter Galloway)

NEW YORK (Reuters) – U.S. stocks rose on Thursday, rebounding from the previous day's steep losses on positive corporate news, but trading was choppy as nervous investors reacted to headlines painting a mixed picture of Europe's debt crisis.

Merck raised its dividend and Cisco reported strong earnings, reinforcing the view that while problems in Europe were still on investors' minds, there were signs of strength in Corporate America.

Wall Street got an early boost after the European Central Bank bought Italian bonds and the government completed a successful bond auction. But trading turned volatile as French bond yields surged on concerns about the nation's credit rating.

Standard & Poor's said "a technical error" caused a message to be sent suggesting France's credit rating had been changed. S&P said that was not the case, and it was investigating the cause of the error.

U.S. crude oil gained 2.4 percent, helping to lift energy shares. The S&P energy group (.GSPE) rose 1.8 percent and led all sectors, while industrials (.GSPI) added 1.1 percent and materials (.GSPM) was up 1.2 percent.

Oil and gas producer Hess Corp (HES.N) added 4.2 percent to $63.96, while United Technologies Corp (UTX.N) rose 2.1 percent to $78.01. 3M Co (MMM.N) added 2.1 percent to $80.65.

"These are the names people are gravitating to, because if a recovery comes out of Europe these industries will be in high demand," said Michael Matousek, senior trader at U.S. Global Investors Inc, which manages about $3 billion in San Antonio.

"However there's still a lot of volatility, and if we drop back under 1,225 on the S&P we'll know there's not a lot of buying power out there."

The Dow Jones industrial average (.DJI) was up 128.66 points, or 1.09 percent, at 11,909.60. The Standard & Poor's 500 Index (.SPX) was up 10.72 points, or 0.87 percent, at 1,239.82. The Nasdaq Composite Index (.IXIC) was up 6.87 points, or 0.26 percent, at 2,628.52.

The S&P 500 fell 3.7 percent on Wednesday, its worst daily percentage drop since August 18.

In October, the index recorded its best monthly performance in 20 years on optimism European leaders were taking control of the debt crisis.

Thursday's economic data showed new U.S. weekly jobless claims declined to the lowest level since April, while the trade deficit unexpectedly shrank in September to its narrowest level since December.

Merck & Co Inc (MRK.N) gained 3.9 percent to $35.09 after the drugmaker raised its quarterly dividend by 11 percent, its first increase since 2004. The move helped lift health-care stocks (.GSPA) 1.6 percent.

Cisco Systems Inc (CSCO.O) jumped 6.6 percent to $18.78 and was the Dow's biggest gainer after its earnings beat estimates and it forecast revenue and profit above expectations.

Green Mountain Coffee Roasters Inc (GMCR.O) pressured the Nasdaq, sliding 38.7 percent to $40.90 after its quarterly revenues came in less than expected.

Italy paid its highest yield in 14 years to sell 12-month debt in an auction Thursday. Despite relief the sale went smoothly, worries festered that its borrowing costs were unsustainable.

In Greece, former European Central Bank vice president Lucas Papademos was appointed to head the country's new crisis coalition.

(Editing by Jeffrey Benkoe)

TORONTO (Reuters) – Toronto's main stock market index extended gains to rise 1 percent on Thursday, boosted by a surge in mining and energy shares and sharp jump in Ivanhoe Mines.

Shortly after the open, Toronto Stock Exchange's S&P/TSX composite index was up 148.31 points, or 1.29 percent, at 11,605.53.

(Reporting by Ashleigh Patterson; Editing by Jeffrey Hodgson)

NEW YORK (Reuters) – Stocks were little changed on Friday, but commodity-related shares rose on energy and gold prices, while Hewlett-Packard dragged on the Dow industrials.

Hewlett-Packard’s shares tumbled 20.1 percent to a six-year low, a day after the company said it may spin off its PC business, the biggest in the world, and lowered its outlook.

Major indices swung between positive and negative from the open, reflecting the volatility that has rocked markets in the past weeks.

The S&P 500 bounced off a session low of 1,130, a key resistance level during last summer that is becoming strong support. Analysts see the next support at 1,100.

“If there are a lot of shorts out there, they might want to cover,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

After Thursday’s 4.5 percent decline on the S&P 500 — the sixth time in the past two weeks that the S&P 500 has moved by 4 percent or more — investors have eased back a bit, he said.

Commodity prices rose as the U.S. dollar weakened, with U.S. crude futures rising 0.5 percent to $82.88 a barrel. Exxon Mobil Corp was up 0.6 percent at $71.30 and ConocoPhillips gained 0.7 percent to $64.26.

The S&P materials index was up 0.7 percent.

The Dow Jones industrial average was down 8.47 points, or 0.08 percent, at 10,982.11. The Standard & Poor’s 500 Index was up 1.86 points, or 0.16 percent, at 1,142.51. The Nasdaq Composite Index was up 12.13 points, or 0.51 percent, at 2,392.56.

Intuit helped the Nasdaq, with its 10.1 percent rise to $44.34, a day after it said it expected net income per share to rise by as much as 24 percent for fiscal year 2012.

Hewlett-Packard’s 20 percent drop left shares at $23.55.

(Reporting by Caroline Valetkevitch, additional reporting by Ashley Lau and Rodrigo Campos)

NEW YORK – Stocks are bouncing between small gains and losses a day after the Dow Jones industrial average had its longest losing streak since August.

Exxon Mobil Corp. rose 1.5 percent after oil prices spiked above $100 per barrel. Oil rose after OPEC ministers made an unexpected decision to keep output at current levels instead of increasing output, which would have pushed down the price of crude.

The Dow is down 10 points, or 0.1 percent, to 12,060 in midday trading Wednesday. The Standard & Poor’s 500 index is down 2, or 0.2 percent, at 1,282. The Nasdaq composite is down 15, or 0.6 percent, to 2,686.

The Fed will release its report on regional U.S. economic conditions at 2 p.m. ET. The report will include economic commentary from regional business owners.

STOCKS UP: Stocks closed higher Wednesday for the first day this week as rising oil prices offset worries about the global recovery. Higher prices for copper, silver and other commodities lifted material and energy companies.

OIL-FUELLED: Oil rose nearly $2 to settle at $101.32 per barrel, pushing energy stocks higher. Cabot Oil and Gas Corp. led the S&P 500, rising 7 percent.

THE INDEXES: The Dow Jones industrial average rose 38.45 points, or 0.3 percent, to 12,394.66. The Standard & Poor’s 500 index rose 4.19, or 0.3 percent, to 1,320.47. The Nasdaq composite rose 15.22, or 0.6 percent, to 2,761.38.