Trader's Highlight

DJI-NEW YORK, Jan 6 (Reuters) - U.S. stocks slipped on Thursday as soft retail sales and a sharp rise in the dollar left investors edgy a day before December's U.S. employment report.

Given a rise of about 8 percent in the S&P 500 since the start of December, investors could be looking for an excuse to sell stocks if the jobs report falls short of forecasts that were raised after Wednesday's strong private-sector payroll report.

The Dow Jones industrial average <.DJI> was down 25.65 points, or 0.22 percent, at 11,697.24. The Standard & Poor's 500 Index <.SPX> was down 2.71 points, or 0.21 percent, at 1,273.85. The Nasdaq Composite Index <.IXIC> was up 7.69 points, or 0.28 percent, at 2,709.89.

NYMEX-NEW YORK, Jan 6 (Reuters) - U.S. crude oil futures prices fell 2 percent and settled below $89 a barrel on Thursday, pressured by the dollar's strength and disappointing December retail sales that weighed on U.S. stock indexes.

U.S. claims for unemployment benefits rose more than expected last week, also helping to dent optimism.

On the New York Mercantile Exchange, February crude fell $1.92, or 2.13 percent, to settle at $88.38 a barrel, having traded from $87.85 to $90.71.

CBOT-CHICAGO, Jan 6 (Reuters) - Chicago Board of Trade wheat, corn and soybean futures closed lower on Thursday, pressured by a higher dollar, lower crude oil and slow export sales of U.S. product, especially corn and soybeans, traders said.

Markets were also pressured by expectations that commodity index funds would sell corn, wheat and soybeans starting on Friday in portfolio rebalancing.

CBOT-SOYBEANS - March down 15-1/2 cents at $13.78 per bushel. Profit-taking after recent rally to 28-month highs. Additional pressure from showers this week in Argentina that eased stress on the developing soy crop. Firm dollar and slow export sales of U.S. soybeans also weigh.

CBOT-SOYOIL - March down 0.35 cent per lb at 56.90. Lower following soybeans and crude oil, but underpinned by oil/meal spreading.

FCPO-KUALA LUMPUR, Jan 6 (Reuters) - Malaysian crude palm oil recovered on Thursday, driven by erratic weather slowing production in major vegetable oil exporting regions at a time of growing global demand.

Palm oil prices were also supported by the rally in other agriculture markets on Wednesday that stoked fears of rising food prices. The United Nation's food agency said food prices hit a record high last month, outstripping levels that triggered riots in 2008.

The benchmark March 2011 crude palm oil contract on Bursa Malaysia Derivatives rose 1.5 percent to trade at 3,864 ringgit ($1,259.452) per tonne. Traded volumes rose to 20,333 lots of 25 tonnes each, compared to the usual 15,000 lots.

REGIONAL EQUITIES-BANGKOK, Jan 6 (Reuters) - Most Southeast Asian stock markets rose on Thursday as higher palm oil prices lifted plantation stocks and investors continued to pour money into financial shares because of growth in regional economies and consumption.

Brisk demand for food and edible oil producers helped push stock indexes in Malaysia <.KLSE> and Indonesia <.JKSE> to record intra-day peaks, with Singapore <.FTSTI> at eight-week highs and Thailand <.SETI> testing a 14-year peak.

At the close on Thursday, Singapore's Straits Times Index was up 0.8 percent while Malaysia's main share index added 0.1 percent, but Indonesia's index finally ended down 1.3 percent, slipping from that record high, while the Thai index ended flat.

Among commodities stocks in Southeast Asia with a market capitalisation above $1 billion, Singapore-listed commodity firm Noble Group saw 2.5 times its average 30-day trading volume. Noble gained 1.8 percent on the day.

Noble Group is the best proxy for the macroeconomic recovery, and strong momentum in agricultural and energy stocks should continue, according to Nomura's Tanuj.

Nomura reaffirmed Noble as its top buy, seeing its valuation at 14.6 times forecast fiscal year 2011 earnings as undemanding in the cyclical upswing.

Other large-cap stocks whose volume on the day was more than double the 30-day average included Wilmar International , the world's largest listed palm oil firm, which gained 1.4 percent.

Malaysian palm plantation firm Sime Darby rose 0.2 percent and Singapore-listed commodities firm Olam International was up 2.2 percent.