NEW YORK (AFP) - US share prices struggled as the crude oil price gushed to a record high in New York, passing 51 dollars a barrel for the first time.
The Dow Jones Industrials Average of 30 top stocks fell 38.86 points, or 0.38 percent, to 10,177.68.
The wider Standard and Poor's 500 index eased 0.69 point, or 0.06 percent, to 1,134.48.
The technology-laden Nasdaq index gained 3.10 points, or 0.16 percent, to 1,955.50.
"Oil has been a problem again," said Jon Forelli, senor vice-president and portfolio manager at Independence Investments.
"If oil goes down there is a good chance the market can rally. If it stays above 50 dollars we are going to have these up-a-little-bit days, down-a-little-bit days and that is what we are stuck in right now."
New York's main crude oil contract closed above 51 dollars a barrel for the first time Tuesday, riding a speculative wave powered by fear of interruptions to supply from the Gulf of Mexico.
Light sweet crude for delivery in November shot up 1.18 dollars to settle at 51.09 dollars.
The contract earlier spiked to a record 51.29 dollars.
Oil traders worried about a US government agency report that 28 percent of the Gulf of Mexico's 1.7 million barrels of daily oil production remained disrupted because of the hurricane season.
"The market is extremely undervalued so there is only so far down it can go from here," said Pan Agora chief investment officer Edgar Peters.
"Fifty dollars is a lot for oil and it will increase costs but businesses are robust enough to be able to absorb that."
Economic data gave little encouragement to the stock market.
The vast US services sector grew at a slower pace in September as hurricanes and high energy prices inflicted pain, the Institute for Supply Management (ISM) said.
The ISM index of non-manufacturing activity fell 1.5 points from the previous month to 56.7, a little lower than expected by many analysts.
It was still the 18th consecutive reading above 50 points, indicating expanding activity.
A separate survey showed US employers announced 107,863 job cuts in September, up 45 percent from August.
It was the biggest one-month cut since January, said the report by outplacement firm Challenger, Gray and Christmas.
Compared with a year ago, job cuts were up 41 percent.
"The return to six-figure job-cut levels paints a grim picture for ongoing economic growth, as such activity is generally considered a measure of how companies view future business conditions," said the firm's chief executive, John Challenger.
Flu vaccine manufacturer Chiron Corp.'s shares plunged 7.44 dollars, or 16.38 percent to 37.98 dollars after the British health authorities suspended its manufacturing license for three months.
Among blue-chip companies, IBM rose 16 cents, or 0.18 percent, to 87.32 dollars after its outlook was upgraded by JP Morgan Securities.
Computer group Hewlett-Packard fell eight cents, or 0.42 percent, to 18.98 dollars after JP Morgan downgraded its assessment of the group.