Stocks advance as investors watch oil prices retreat

Retailers' figures came in following worrisome results from Toyota Motor Corp., which said late Wednesday that profit in the January-to-March period tumbled 28 percent due to the rising yen and weak North American sales. The Japanese automaker also predicted sales will drop for the fiscal year through March 2009 for the first time in several years, and profit will fall 27 percent.

Toyota's U.S.-traded shares fell $4.55, or 4.3 percent, to $100.21.

In other earnings news, American International Group Inc. is scheduled to release its first-quarter results after the close of trading. Analysts expect the insurer to post a loss. AIG shares rose 6 cents to $45.14 ahead of the report.

Gold prices rose, while the dollar climbed against most other major global currencies.

The European Central Bank left its interest rates unchanged Thursday. ECB President Jean-Claude Trichet pointed to clear upside risks to price stability, indicating that the bank is unlikely to lower its rates in the near future.

The Russell 2000 index rose 0.34, or 0.05 percent, to 716.55.

Advancing issues outnumbered advancers by about 4 to 3 on the New York Stock Exchange, where volume came to 519.7 million shares.

In overseas trading, Japan's stock market fell 1.13 percent. Britain's FTSE index rose 0.16 percent, Germany's DAX index fell 0.06 percent, and France's CAC-40 fell 0.39 percent.

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