NEW YORK (AP) – Stocks were narrowly mixed Thursday after higher energy prices offset a government report that showed the economy grew faster-than-expected during the fourth quarter.

The Commerce Department’s final measure of fourth-quarter gross domestic product, which showed growth of 2.5 percent, could help quell concerns that economic growth is slowing too quickly. At the same time, strong economic growth could make it harder for the inflation-wary Federal Reserve to cut short-term interest rates.

Wall Street’s early advance was pared a bit by late morning as many investors began to reshape their portfolios ahead of Saturday’s end of the first quarter. Also troubling investors was crude’s steady march to above $65 per barrel.

“The market is at a pivotal point,” said Scott Fullman, director of investment strategy for Israel A. Englander & Co. “The market has become more volatile, and more sensitive, to news items. And, rising oil prices is causing concern about what it will do to the economy.”

In early afternoon trading, the Dow Jones industrial average rose 22.91, or 0.19 percent, to 12,323.27.

Broader stock indicators were mixed. The Standard & Poor’s 500 index was up 2.51, or 0.18 percent, at 1,419.74, and the Nasdaq composite index fell 8.79, or 0.36 percent, to 2,408.31.

Bonds slipped, with the yield on the benchmark 10-year Treasury note rising to 4.64 percent from 4.62 percent late Wednesday. The dollar fell against other major currencies, while gold prices tumbled.

Oil prices extended their gains Thursday after settling at their highest level since mid-September on Wednesday amid political tensions in the Middle East. Also driving up prices was declining U.S. supplies amid high demand. Light, sweet crude rose $1.80 cents to $65.88 per barrel on the New York Mercantile Exchange.

The recent rise in oil prices generally poses a concern as increased energy costs could curb consumer spending and add to inflationary pressures. Wall Street might get more feedback from policymakers this afternoon as a number of Fed officials are slated to speak.

Federal Reserve Bank of Minneapolis President Gary Stern was upbeat about the U.S. economy, but refrained from connecting that outlook to the future path of monetary policy. Fed Vice Chairman Donald Kohn plans to testify before the House Financial Services Committee.

After the closing bell, Richmond Fed President Jeffrey Lacker is scheduled to speak before economists in Richmond on inflation and unemployment. His speech comes after a report showed the number of newly laid-off workers signing up for unemployment benefits last week declined, suggesting the job market is still in good shape even as the economy goes through a sluggish spell.

In corporate news, U.S. Steel announced it will acquire Lone Star Technologies for $67.50 per share price, which represents a 39 percent premium. U.S. Steel rose $2.75, or 2.8 percent, to $100.36, while Lone Star surged $17.46, or 36 percent, to $65.91.

RF Micro Devices Inc., which makes radio frequency components, warned that weaker demand from a major customer would hurt its first-quarter results. Shares fell 76 cents, or 10.8 percent, to $6.31.

Circuit board maker Multi-Fineline Electronix Inc. said its second-quarter sales and profit could decline from the first quarter. The stock fell $1.23, or 7 percent, to $16.27.

The Russell 2000 index of smaller companies fell 0.78, or 0.10 percent, at 796.62.

Overseas, Japan’s Nikkei stock average rose 0.05 percent. In afternoon trading, Britain’s FTSE 100 was up 0.91 percent, Germany’s DAX index added 1.18 percent, and France’s CAC-40 was rose 1.42 percent.

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