Exxon Mobil and Chevron rose more than 1 per cent each, supporting the Dow and S&P 500. Oil prices in New York closed at a record high above US$126 (S$172) on a weakening dollar and a Goldman Sachs forecast that crude would reach US$141 per barrel.

Earlier, US oil futures hit an intraday record near US$128.

The lofty level of oil prices helped drive down other sectors, however. An S&P index of retail shares was down 1.1 per cent.

US consumer confidence tumbled this month, according to the Reuters/University of Michigan Surveys of Consumers, as short-term inflation expectations hit their highest since the stagflation era of the early 1980s.

The consumer accounts for 'around two-thirds to 75 per cent of the US economy. So I think when you look at energy prices and housing prices weakening in key areas, these are all aspects keeping the consumer weak, and sentiment numbers are reflecting that', said Mr Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.

For the week, stocks rose, however, and the S&P had its best weekly percentage gain in about a month, with data showing a modest rise in consumer prices in April contributing to the week's upbeat news.

The Dow Jones industrial average slipped 5.86 points, or 0.05 per cent, to end at 12,986.80.

But the Standard & Poor's 500 Index inched up 1.78 points, or 0.13 per cent, to 1,425.35.

The Nasdaq Composite Index dropped 4.88 points, or 0.19 per cent, to 2,528.85.

For the week, the Dow was up 1.9 per cent, the S&P was up 2.7 per cent and the Nasdaq was up 3.4 per cent. -- REUTERS