Oil prices steadied on Thursday as economic optimism from data showing that the U.S. service sector and retail sales improved was tempered by disappointing news from the labor market.

A rise in existing home sales last month shows things are getting better in the U.S. housing market, but the still-dire unemployment situation and the looming possibility of a jobless recovery may halt the rally by the end of the year. That makes the extension of an $8,000 tax credit for first-time homebuyers imperative.

The retail sector is all over the news. Unfortunately, the headlines are almost all negative. As unemployment risks remain high, consumers refuse to spend.

All Three Markets Rise on Earnings Beats; Government Now Citi’s Biggest Shareholder; Jobless Claims Up but Subsiding; Crude Surges More Than 5%; Motorola Surprises; Recession Takes a Toll on House of Mouse; Ballmer Defends Yahoo Partnership; Southwest Makes Bid for Frontier

Senate Nixes Quick Healthcare Vote; Falling PC Sales Hurt Microsoft’s Bottom Lines; Jobless Claims Rise; Deutsche Raises Apple Outlook on iPhone Sales; Economist: Housing Market Has Hit Bottom; AT&T Profit Falls 15%; McDonald’s Profit Down; 3M Beats Expectations

Jobless Claims Fall; China Detains Four Rio Tinto Employees for Alleged Espionage; Retail Roughed Up in June; China Auto Sales Skyrocket; Broadcom Drops Acquisition Attempt; Mortgage Rates Fall; Madoff Won’t Appeal Sentence

Fed sees the bright side… Bernanke says worst it over, inflation not a worry… Warren Buffett can’t see any green shoots… even after eye surgery… Alan Knuckman on how to survive a sideways stock market… Byron King says now’s a good time to book profits on this sector… Housing still out of whack… one chart foreshadows the market’s next move…

Jobless Claims Surprise; GDP Revised Up; AIG Makes Plans to Pay Back Feds; Palm Losses Mount, But Revenue Beats Street; Micron Loss Not As Much As Expected; Senator: Health Care Bill Could Cost $1 Trillion; GM Keeps 1,200 Jobs in Michigan

Stocks edged up in early morning trading today (Thursday) as an uptick in producer prices and steady earnings from Wal-Mart Stores Inc. (NYSE: WMT) outweighed a surge in jobless claims last week.

It’s clear to at least some that banks can’t subsidize the banks forever. So where does that leave bank share prices? It’s a valid question, even if it can’t be heard right now over the din of champagne corks popping and the chorus of Hallelujahs wafting up over Wall Street and the White House.