By Elizabeth Stanton Nov. 28 (Bloomberg) -- Most U.S. stocks fell, paring gains in the market’s first weekly advance since October, as concern the recession will erode demand for energy and metals dragged down commodity producers. Hess Corp., the fifth-biggest U.S. oil producer, tumbled 7 percent as crude slid below $53 a barrel. Intel Corp., the world’s largest chipmaker, lost as much as 1.5 percent after European rival STMicroelectronics NV cut its sales forecast. Target Corp. slid 4.6 percent as retailers discounted merchandise by as much as 70 percent to counter what is forecast to be the weakest holiday season in six years. “We are in a very anomalous situation where you get these enormous, sharp, short-covering rallies and then it falls off again,” Gavin Graham, director of investments at Bank of Montreal Asset Management in Toronto, said on Bloomberg Television. “It would be fair to assume that in a year’s time we’ll be substantially higher than we are now.” Almost two stocks fell for each that rose on the New York Stock Exchange. The S&P 500 slipped 0.6 percent to 882.39 at 10:35 a.m. in New York. The Dow Jones Industrial Average retreated 16.96 points, or 0.2 percent, to 8,709.65, while the Nasdaq Composite Index lost 1.1 percent to 1,515.31. The S&P 500 surged 10 percent this week as the Federal Reserve committed as much as $800 billion to help resuscitate lending markets and investors speculated President-elect Barack Obama’s economic team will bolster growth. The index has still tumbled 44 percent from its October 2007 record as credit- related losses and writedowns at global financial companies approach $1 trillion. Early Close U.S. exchanges were shut yesterday for the Thanksgiving holiday and will close at 1 p.m. today. This week’s rally in U.S. stocks helped push the MSCI World Index of 23 developed markets up 11 percent since Nov. 21, the steepest weekly advance since data began in 1970. Europe’s Dow Jones Stoxx 600 Index swung between gains and losses after rising for four straight days. STMicroelectronics said fourth-quarter revenue and gross margin will miss forecasts after a slowdown in demand from the wireless, automotive and computer peripherals industries. To contact the reporters on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

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