YAHOO [BRIEFING.COM]: The major indices started the session with solid gains, but drifted into the red before gradually paring losses into the close.

Part of this session's weakness came as concerns that rising oil prices and higher borrowing costs associated with rising Treasury yields could stymie an economic rebound.

Oil prices eclipsed the prior session's 2009 closing high by finishing 1.7% higher at $71.14 per barrel. Crude prices also registered new intraday highs for 2009 by climbing to almost $71.80 per barrel shortly after weekly oil inventories showed a surprise draw.

Treasuries fell under renewed selling pressure amid news that the Russian Central Bank will cut its Treasury holdings, and a $19 billion auction of 10-year Notes proved disappointing. In turn, the 10-year Note shed some 20 ticks this session, which pushed its yield up above 3.9%. That means the yield on the benchmark Note has increased by approximately 80 basis points in less than one month.

The disappointing auction and rise in yields drove selling in the broader market, which left only the utilities sector (+1.6%) in the green. However, as the market pared its losses into the afternoon, materials (+0.1%), telecom (+0.2%), and energy (+0.7%) were able to climb back into the green and log gains.

Financials saw the worst loss by declining 1.6%. Consumer discretionary stocks slid 1.0%, despite an upwardly revised earnings outlook from home improvement retailer Home Depot (HD 24.39, +0.04).

Investors continue to look for signs that economic growth is actually taking root and, in turn, were uninspired by comments from the Fed's Beige Book that signs of economic decline are slowing, while several districts indicated that their expectations have improved.

News that the overall trade deficit widened to $29.2 billion in April from $28.5 billion in March also had little impact on trading. The latest number was in step with the consensus estimate, but reflected the ongoing economic difficulties around the globe. Moreover, the April figure was a bit above the first quarter average, so it will factor negatively into second quarter GDP forecasts.DJ30 -24.04 NASDAQ -7.05 NQ100 -0.4% R2K -0.8% SP400 -0.5% SP500 -3.28 NASDAQ Adv/Vol/Dec 1038/2.38 bln/1624 NYSE Adv/Vol/Dec 1376/1.22 bln/1636