NEW YORK (AP) — Stocks fluctuated Thursday, dipping in and out of positive territory, after a regional manufacturing report pointed to slumping demand and rising prices.

Another report, from a private business group, said its forecast of future economic activity ticked higher by 0.1 percent in May. The findings from the New York-based Conference Board were in line with expectations but indicated that the economy is slack.

The manufacturing picture from the Philadelphia Federal Reserve stirred some concern that a drop in demand and increases in prices for commodities like oil are buffeting some businesses.

The reports ultimately didn't give investors much reason to go bargain hunting a day after a triple-digit decline in the Dow Jones industrials.

Concerns about tight credit have returned amid profit declines at major investment banks and signals that the industry is going to have to raise more cash. With the nation's money centers under stress, it appears the economy will have a hard time rebounding; borrowing is essential to growth.

"We think the market is in a period of transition," said Alfred Goldman, chief market strategist at Wachovia Securities in St. Louis.

He said the economic news arriving Thursday wasn't unexpected and that mixed reports will likely continue and unnerve some investors. "In such an environment confidence is often very thin," Goldman said.

In late morning trading, the Dow fell 14.74, or 0.12 percent, to 12,014.32. The Dow fell below the 12,000 mark in Wednesday's trading for the first time since mid-March. The blue chips finished above that level, however.

Broader stock indicators also declined Thursday. The Standard & Poor's 500 index fell 3.52, or 0.26 percent, to 1,334.29, and the Nasdaq composite index fell 2.36, or 0.10 percent, to 2,427.35.

Earlier, the Labor Department reported that initial claims for unemployment declined by 5,000 last week from the previous week. The decrease was a bit smaller than expected, and the four-week moving average of initial claims, a less volatile indicator, rose — a sign that the U.S. job market remains strained.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, edged up to 4.16 percent from 4.14 percent late Wednesday.

The dollar traded mixed against other major currencies, while gold prices rose.

Crude oil futures, which had been higher following reports of an attack on an installation in Nigeria, fell $1.82 to $134.86 per barrel on the New York Mercantile Exchange after China disclosed plans to raise oil prices. Such a move could dampen demand.

Goldman said the level of pessimism indicates that the market could be poised for a turnaround, but added: "Oil is still the 800-pound gorilla that's affecting everybody's thinking, but oil is beginning to act a little bit tired and toppy."

In earnings news, Circuit City Stores Inc. posted a first-quarter loss that was wider than last year's due to sinking sales at established stores. The electronics retailer also said it is suspending its dividend. The company's per-share loss was slightly smaller than analysts expected, but its revenue was lower. Circuit City fell 18 cents, or 4.4 percent, to $3.87.

Hexion Specialty Chemicals Inc. said it doesn't think it will be able to acquire fellow chemicals maker Huntsman Corp. because of the deterioration of Huntsman's finances. Huntsman shares fell $8.09, or 39 percent, to $12.77.

Declining issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange, where volume came to 399.3 million shares.

The Russell 2000 index of smaller companies fell 0.24, or 0.03 percent, to 730.47.

Overseas, Japan's Nikkei stock average sank 2.23 percent. In afternoon trading, Britain's FTSE 100 fell 0.55 percent, Germany's DAX index rose 0.42 percent, and France's CAC-40 fell 0.22 percent.