NEW YORK — Stocks tumbled on disappointing retail sales and a rise in oil prices yesterday as investors, worried about oil's impact on consumer spending, took profits from the market's July rally.

Many retailers reported only modest sales gains as hot weather stifled demand for fall fashions and as many consumers spent their money at auto dealers instead of malls. But investors nonetheless were wondering whether retailers' results were a sign that consumers might finally be feeling the pinch from high gasoline and energy prices.

Those concerns were exacerbated when crude oil futures once again neared all-time highs. A barrel of light crude settled at $61.38, up 52 cents on the New York Mercantile Exchange.

However, with stocks still near four-year highs, analysts said the selloff was unlikely the start of a major downward trend.

"I still think this market will grudgingly go up," said Kurt Wolfgruber, chief investment officer at Oppenheimer Funds.

Bonds traded in a narrow range, with the yield on the 10-year Treasury note rising to 4.31 percent from 4.30 percent late Wednesday.

The dollar was mixed against other major currencies, while gold prices rose.

The sales reports and oil worries overshadowed a positive employment report from the Labor Department. First-time jobless claims fell by 1,000 last week to 312,000. The news bodes well for the monthly job creation report that is expected to be released today.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where preliminary consolidated volume amounted to 1.96 billion shares, compared with 2.01 billion on Wednesday.