At 7:45 a.m. ET, Nasdaq and S&P futures were higher, suggesting a stronger open for Wall Street. U.S. markets were closed Friday for the July 4 holiday.

Stocks ended mixed in Thursday's abbreviated session following a weak June jobs report and a rise in interest rates in Europe. Record high oil prices and steep declines in GM's share price also weighed on the market last week.

Last week's declines helped push the Dow and Nasdaq more than 20% off the highs hit in October - officially putting the indexes in bear market territory.

"With no economic data today, I think we may see a technical rebound as the market continues to track the price of oil and the currency markets," said Peter Cardillo, chief market economist at Avalon Partners.

Energy. Crude prices fell back from their all-time high as the dollar strengthened. U.S. crude for August delivery traded at $142.95 a barrel in electronic trading on the New York Mercantile Exchange, down $2.34 from Thursday's floor close. There was no floor trading in the U.S. Friday.

Retail gas prices rose overnight to a record high for the eighth consecutive day. The national average price for a gallon of gas edged higher to $4.108, according to a survey by AAA.

Earnings. Investors are likely to be on edge ahead of the start of earnings season, which unofficially kicks off when Alcoa (AA, Fortune 500) reports results after the close Tuesday.

Analysts expect Alcoa to report lower second-quarter profits, according to a poll by Thomson Financial. The Dow component's earnings are expected to be hurt by high commodity and energy costs.

Deal news. NBC Universal and two private equity firms said Sunday they have reached a deal to buy The Weather Channel from Landmark Communications Inc. NBC Universal is a unit of GE (GE, Fortune 500).

German health care group Fresenius said Monday it will buy Schaumberg, Ill.-based APP Pharmaceuticals (APPX) in a deal valued as much as $4.6 billion.

Belgian brewer InBev, which has made an unsolicited takeover offer for Anheuser (BUD, Fortune 500), said Monday it wants to replace the entire Anheuser board.

Autos. General Motors (GM, Fortune 500) is set to cut thousands of more jobs and sell more of its brands amid a deepening slump in auto sales, The Wall Street Journal reported.

Merrill. Financial firm Merrill Lynch (MER, Fortune 500) is considering selling its stakes in money manager BlackRock and information provider Bloomberg, according to published reports.

Other markets. In global trade, Asian markets ended higher. European shares rose in midday trading.

Bond prices were mixed. The benchmark 10-year note held steady at 99 4/32. Its yield was 3.98%, up from 3.97% on Thursday.

The euro fell against the dollar, buying $1.5650 in morning trade, down from $1.5712 late Friday in New York. The dollar bought ¥107.53 up from ¥106.68 on Friday.

Gold prices fell $9.4 to $924.2 an ounce in electronic, premarket trading.  

NEW YORK (CNNMoney.com) -- The Dow gained Thursday, with recently battered blue chips bouncing back, but the broader market was mixed as investors considered a weak June jobs report and a rise in interest rates in Europe.

The Dow Jones industrial average (INDU) gained 0.7%, thanks to a bounce in GM and bank stocks such as JP Morgan Chase.

The broader Standard & Poor's 500 (SPX) index rose 0.1%. The tech-heavy Nasdaq composite (COMP) lost 0.3%, with a nearly 31% slump in chipmaker Nvidia exerting pressure.

Thursday was a shortened session, with trading ending at 1 p.m. ET. All financial markets are closed Friday for the Fourth of July holiday.

All three major gauges posted declines for the abbreviated week. The Dow lost 0.5%, the S&P 500 lost 1.2% and the Nasdaq lost 3%

Stocks fell Wednesday, with the Dow and Nasdaq ending in bear market territory - a drop of at least 20% off the October highs. The decline was sparked by record oil prices, a 15% slump in GM stock and jitters about Thursday's two big developments - the June jobs report and the European Central Bank's (ECB) interest-rate decision.

But the jobs report was mostly in line with forecasts and the dollar seemed to withstand the rise in rates, enabling stocks to stabilize Friday. A report on the services sector of the economy showed continued weakness.

Job losses continue: Employers cut jobs from their payrolls in June for the sixth month in a row, the government said, providing clear evidence that the labor market remains strained.

But the loss of 62,000 jobs was roughly in line with forecasts for a decline of 60,000, according to a Briefing.com survey. Job losses in May were revised to 62,000 from an initial reading of 49,000.

The unemployment rate, generated by a separate survey, held steady at 5.5%, versus forecasts for it to slide to 5.4%. Average hourly earnings, the report's inflation component, rose 0.3%, as expected. (Full story)

"We're seeing continued deterioration," said Gregory Miller, chief economist at SunTrust Banks. "This is the sixth month in a row that payrolls have declined and unemployment is showing upward momentum."

Meanwhile, the weekly jobless claims report, a separate indicator, rose more than expected, with the number of Americans filing new claims for unemployment jumping to 404,000 last week.

Miller said that if you combine the steady unemployment rate, which was exacerbated by a smaller labor force, with the weekly claims number, which reflects the momentum at the end of the second quarter, the outlook is pretty bleak.

"I suspect we'll continue to have job losses of this magnitude or greater as we move into the summer or the fall," he said.

A separate report, the Institute for Supply Management's services sector index, fell to 48.2 in June from 51.7 in May. Economists thought there would be a narrower slip to 51. Any reading below 50 indicates weakness.

Interest rates and the dollar: The ECB lifted its main interest rate to 4.25% from 4% in a widely expected move. However, the euro showed little reaction, with currency traders having already anticipated the hike in rates and some even looking for a bigger boost to 4.5%.

The dollar rose versus the euro and the yen Thursday.

Many economists have been concerned that rising rates in Europe will boost the euro, hurt the dollar, and ultimately drive dollar-traded commodity prices even higher.

In addition to the ECB, Sweden again lifted its key interest rate Thursday. Two central banks lifting rates shows a shift in momentum, Miller said.

And he believes that momentum is going to hammer the dollar and boost oil prices, particularly if the Federal Reserve keeps delaying a boost in its benchmark fed funds rate, currently at 2%.

The Fed opted to hold rates steady last month - ending a lengthy cutting campaign - with inflationary concerns countered by sluggish growth.

Fuel prices rise: U.S. light crude oil for August delivery rose $1.72 to settle at $145.29 on the New York Mercantile Exchange after hitting an electronic trading record of $145.85 earlier. (Full story).

Prices have already risen more than 50% this year in response to tight supply and tensions in the Middle East.

The national average price for a gallon of regular unleaded gas rose to a record $4.098 from the record $4.092 the previous day, according to AAA. (Full story).

Company news: GM (GM, Fortune 500) gained 1.4%, after plunging 15% Wednesday to a near 54-year low following an analyst downgrade that raised worries about its cash position and the possibility of bankruptcy.

Nvidia (NVDA) shares slumped almost 31% in early trade after warning late Wednesday that current-quarter sales won't meet forecasts due to slower global demand. The graphics chipmaker also said its gross margin - a key measure of profitability - won't meet forecasts.

Financial shares were mixed, with JP Morgan (JPM, Fortune 500), Lehman Brothers (LEH, Fortune 500) and Washington Mutual (WM, Fortune 500) among the gainers and Comerica (CMA) and Zions Bancorp (ZION) among the losers.

Market breadth was negative and the volume was modest, with many traders leaving early to get a jump on the weekend. On the New York Stock Exchange, losers beat winners two to one on volume of 930 million shares. On the Nasdaq, decliners topped advancers eight to five on volume of 1.42 billion shares.

Other markets: In the bond market, Treasury prices slipped modestly, raising the yield on the benchmark 10-year note to 3.97% from 3.96% late Wednesday. Bond prices and yields move in opposite directions.

COMEX gold for August delivery fell $12.90 to $933.60 an ounce. 

The Dow Jones industrial average (INDU) lost 1.5%, led by a 15% slide in GM shares.

The broader Standard & Poor's 500 (SPX) index fell 1.8%, the tech-heavy Nasdaq composite (COMP) slid 2.3% and the Russell 2000 small-cap index retreated 2.8%.

Both the Dow and the Nasdaq closed at levels that meet the technical definition of a bear market, defined as a drop of at least 20% off the cyclical highs - in this case the highs from last October.

The Nasdaq previously fell into bear market territory in March, when it fell 24% off its highs.

The Dow Jones Transportation average lost 4.3%, falling to a more than 3-month low, with all 20 components sliding, led by Continental Airlines (CAL, Fortune 500), which slumped over 11%. AMR (AMR, Fortune 500) shares fell 4.7% after unit American Airlines said it may cut 900 flight attendant jobs as it contends with surging fuel prices

Transportation names tend to weaken when oil prices are up as investors punish stocks that take a direct hit from higher fuel prices.

Stocks were lower in the morning on rising oil prices, a weak dollar and reports that showed improved factory orders and worse private sector employment. Stocks managed to cut losses in the mid afternoon as the financial sector rallied, but the recovery attempt was short lived.

"I think you're seeing a continuation of the downward trend and maybe some fear about tomorrow's news," said Joseph Saluzzi, co-head of equity trading at Themis Trading. Thursday brings the June employment report and an expected interest-rate hike from the European Central Bank.

Should the ECB boost rates, that would likely lift the euro and drag on an already hard-hit dollar, which in turn would pressure oil prices. Dollar-traded commodities such as oil have been on the rise partly because of the greenback's weakness.

All financial markets close early Thursday and are closed altogether Friday for the Fourth of July holiday, which could be creating jitters.

"I think there are some worries ahead of the long weekend and so people want to square up," said Bill Stone, chief investment strategist at PNC Financial Services Group.

He said that at the moment, investors are looking for most news to be bad news - and that perspective is weighing on market sentiment.

After the close, Nvidia (NVDA) warned that current-quarter sales won't meet forecasts due to slower global demand. The graphics chipmaker also warned that its gross margin - key measure of profitability - won't meet forecasts. Shares slumped 20% in after-hours trade.

GM sinks, market follows: On Tuesday, GM (GM, Fortune 500) surprised the market by reporting that June sales fell 18% versus expectations for a steeper drop of 25%. That sent GM shares higher and helped the broader stock market bounce back.

But on Wednesday, Merrill Lynch downgraded the automaker, sending the stock down 15% to end at a more than 54-year low of just under $10.

Merrill cut the automaker's rating to "underperform" from "buy" and cut the automaker's price target to $7 per share from $28 per share, saying that the company is burning through cash and that bankruptcy is "not impossible."

Oil prices rise: U.S. light crude for August delivery rose $2.60 to settle at a record $143.57 a barrel on the New York Mercantile Exchange. Prices have already risen more than 50% this year in response to tight supply and tensions in the Middle East. Oil hit an electronic trading record of $144.32 after the close of the regular session.

The government reported Wednesday morning that crude supplies dropped by 2 million barrels last week, beating forecasts for a drop of 1.2 million barrels. Gasoline stocks rose by 2.1 million barrels, beating forecasts for a drop of 500,000 barrels. Distillates, used in heating oil, rose by 1.3 million barrels versus forecasts for a rise of 2.4 million barrels.

On Tuesday, the International Energy Agency said that global supply will remain tight, despite higher prices and less demand in the United States and Europe, with demand from developing countries surging over the next five years.

The national average price for a gallon of regular unleaded gas rose to a record $4.092 from the record $4.087 the previous day, according to AAA. (Full story).

Corporate news: Select financial stocks managed to buck the downward trend Wednesday after both Deutsche Bank (DB) and UBS (UBS) said that they would not need to raise additional capital. Deutsche Bank also said it would post a second-quarter profit.

Microsoft (MSFT, Fortune 500) has approached other media companies about the possibility of partnering to buy Yahoo (YHOO, Fortune 500)'s search business, according to a Wall Street Journal report. News Corp. and CNNMoney.com parent Time Warner were among the companies approached, the paper said. In May, Microsoft abandoned its $47.4 billion bid for Yahoo. (Full story)

Blockbuster (BBI, Fortune 500) said its withdrawing its more than $1 billion bid for Circuit City (CC, Fortune 500) because of poor market conditions. Circuit City sales have plummeted this year in response to the sluggish economy and consumer spending environment. Shares of Blockbuster rallied 5.6% on the news, while Circuit City shares slumped 9%. (Full story)

UnitedHealth Group (UNH, Fortune 500) warned that 2008 profit won't meet previous forecasts due to higher costs and weaker business. The company also said that it will cut around 4,000 jobs. Separately, the healthcare company said it will pay $912 million to settle two class-action lawsuits that relate to its stock-options practices.

Alcoa (AA, Fortune 500) led the list of stocks in the materials sector seeing declines, falling 6.8%. Materials was the second-best performing S&P sector in the first half of the year, following energy.

In other news, Starbucks (SBUX, Fortune 500) said late Tuesday that it will close 600 stores, or 8.5% of its 7,100 stores, expanding an initial plan to close 100 stores. The coffee chain has been struggling amid the weak economy. Shares tiptoed higher. (Full story).

Economic news: Factory orders rose 0.6% in May, after rising a revised 1.1% in April, the government reported. That was above economists' forecasts for a rise of 0.5%, according to Briefing.com, but was the weakest showing since February, reflecting limp demand for autos, heavy machinery and steel. (Full story).

Private sector employment slumped in June, with employers cutting 79,000 jobs from their payrolls after adding a revised 25,000 in May, according to payroll services firm ADP. Economists surveyed by Briefing.com expected employers to cut 20,000 jobs, on average.

The report exacerbated jitters about Thursday's big government employment report. That report was expected to show that employers cut 60,000 jobs from their payrolls in June after cutting 49,000 in the prior month. The unemployment rate, generated by a separate survey, is expected to have fallen to 5.4% from 5.5% the previous month. (Full story).

Other markets: In currency trading, the dollar fell versus the euro and the yen.

In the bond market, Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.97% from 4.00% late Tuesday. Bond prices and yields move in opposite directions.

COMEX gold for August delivery rose $2 to settle at $946.50 an ounce.