NEW YORK, USA - WALL Street stocks finished mixed on Monday as soaring oil prices continued to buffet investor confidence amid lingering fears about their impact on the energy-hungry US economy.

Record oil prices are already causing problems for airlines, vehicle manufacturers and major delivery firms, and analysts say the pain is unlikely to ease any time soon.

The blue-chip Dow Jones Industrial Average finished up a slight 3.50 points (0.03 per cent) at 11,350.01 following heavy losses last week. The leading index is down over 14 per cent for the year so far as oil and economic worries continue to subdue equities.

Stocks struggled for momentum in choppy trading after a key New York oil futures contract rocketed to a record peak of US$143.67 (S$195.22) a barrel. The contract subsequently retreated to close at US$140.

'Rising oil prices remain a worrisome focal point, as does the woeful performance of the financial sector,' analysts at Briefing.com said in a market note.

Analysts say the weak US dollar has stoked oil price gains because international oil contracts are priced in dollars and have become relatively cheaper for buyers armed with stronger currencies.

'With the stock market on track for the worst June performance since the Great Depression and with the dollar still weak it looks like oil is going to soar,' said Mr Phil Flynn, an energy analyst at Alaron Trading.

General Motors's stock closed down 0.4 per cent at US$11.50. Its stock had earlier skidded as low as 11.12 to levels last seen in the 1950s as the automaker battles falling sales of its gasoline-guzzling trucks.

GM is due to post its latest monthly sales results Tuesday and analysts say its results are likely to remain depressed. Sales of its sport utility vehicles have fallen as oil prices have streaked higher in the past year.

Electronic Data Systems, a business services outsourcing firm, meanwhile said the US government had given it the green light for its planned 14-billion-dollar merger with computer maker Hewlett-Packard.

EDS's shareholders are due to vote on the merger, which still requires European regulatory approval, on July 31st.

EDS's shares closed up 0.3 per cent at US$24.64. HP's shares finished 0.8 per cent lower at US$44.21.

And tax preparation giant H&R Block announced it had swung back to profitability during its fiscal fourth quarter as it unveiled a profit of US$543.6 million compared with a loss of US$85.6 million a year earlier.

H&R Block's shares closed 3.0 per cent higher at US$21.40.

Bond prices strengthened as the yield on the 10-year US Treasury bond dropped to 3.979 per cent from 3.990 per cent on Friday and that on the 30-year bond eased to 4.531 per cent against 4.537 per cent.

Bond yields and prices move in opposite directions.

European stock markets closed mixed. In London, the FTSE 100 index jumped 1.74 per cent to 5,625.90 points and in Paris, the CAC 40 gained 0.85 per cent to 4,434,85 points, but in Frankfurt the DAX index slipped 0.06 per cent to 6,418.32 points.