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Wall Street struggled to find direction Thursday morning as mixed reports from the economy and the corporate sector had the market wobbling.

With the holiday week fast-approaching, volumes were light and investors appeared to shy away from aggressive moves in the equity markets, but there was plenty of action in commodities, currencies and government debt.

The Labor Department kicked off the day, reporting that initial jobless claims inched down to 554,000 last week, from 575,000 the week before. Meanwhile, continuing claims edged back below 4.4 million. The decline was positive news, but the hits keep coming; health insurance outfit Aetna (nyse: AET - news - people ) said it will cut its workforce by 1,000 jobs. (See "December 2008 Layoffs.")

A closely-watched reading on manufacturing activity was not as bad as feared; the Philadelphia Fed index came in at negative 32.9 for December. The figure indicates regional activity in the sector slowed less than expected, following a negative 39.3 reading in November.

Major indexes were little changed by midday, as the Dow was down 10 points, or 0.1%, to 8,814; the S&P 500 was up 2 points, or 0.3%, to 907; and the Nasdaq gained 3 points, or 0.2%, to 1,582. There was more action in other markets during the seesaw session though.

Traders scoffed at Wednesday's production cut of 2.2 million barrels of oil a day by the Organization of Petroleum Exporting Countries, sending crude down $1.98, to $38.08 a barrel. United States Oil Fund (nyse: USO - news - people ), an exchange-traded vehicle that seeks to mirror the movement of crude and other products, lost $1.64, or 4.7%, to $33.17. (See "Russia Dashes OPEC's Hopes.")

Treasury yields and the dollar continued to soften, after the Federal Reserve slashed its benchmark fed funds rate effectively to zero on Tuesday. The 10-year note's yield was down to 2.10%, from 2.20% Wednesday. The iShares Lehman 10-20 Year Treasury Bond Fund (nyse: TLH - news - people ), which tracks longer maturities, was up $1.92, or 1.6%, to $123.80. The euro sustained recent strength early, trading over $1.44 Thursday morning, but shed its gain and fell back to $1.429 by midday. (See "Helicopter Ben Goes ZIRP!")

South Korea's central bank carried out its biggest interest rate cut ever Thursday, slashing borrowing costs by a full percentage point to a record low in a bid to stave off possible recession.

The Bank of Korea said it was slashing its benchmark seven-day repurchase rate to 3 percent from 4 percent during a regular policy meeting Thursday.

It was the fourth time for the bank to lower the rate in the past two months and exceeded the 0.75 percentage point emergency cut on Oct. 27, previously the largest one.

The rate has gone from 5.25 percent to 3 percent since the cycle of easing began on Oct. 9.

The previous record low for the bank's benchmark rate was 3.25 percent last seen in October 2005.

South Korea's economy slowed in the third quarter and economists are predicting it could falter further next year amid global economic weakness.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Russian President Dmitry Medvedev agreed to help start a nuclear energy program in Venezuela and then departed for Cuba Thursday in a tour aimed at restoring ties that have dwindled since the Cold War.

Medvedev used his visit to Venezuela -- the first by a Russian president -- to raise Russia's profile in Latin America and deepen trade and military ties. Chavez denied trying to provoke the United States, but he welcomed Russia's growing presence in Latin America as a step away from U.S. influence toward a "multi-polar world."

The two leaders toured a Russian destroyer docked in a Venezuelan port, one of two large Russian warships that arrived this week for training exercises in the first deployment of its kind in the Caribbean since the Cold War.

Chavez saluted the captain, and while touring the vessel joked to reporters from the deck: "We're going to Cuba!" The warships will hold joint exercises with Venezuela's navy next week.

Business deals also were high on Medvedev's agenda: Russia pledged to help Venezuela with oil projects and building ships, while Chavez's government signed a deal to buy two Russian-made Ilyushin Il-96 passenger jets to add to the state airline's fleet for long-range flights.

Wednesday's accords included a pledge of cooperation on peaceful nuclear energy.

Moscow plans to develop a nuclear cooperation program with Venezuela by the end of next year, said Sergei Kiriyenko, head of the Russian Federal Atomic Energy Agency.

"We are ready to teach students in nuclear physics and nuclear engineering," he said. He said the help would include "research and development" and "looking for uranium in the territory of Venezuela."

Chavez says Venezuela hopes to build a nuclear reactor for energy purposes.

Medvedev also said Russia is ready to "think about participating" in a regional socialist trade bloc led by Chavez, likely as an associate member.

Chavez launched the Bolivarian Alternative for the Americas, named after South American independence hero Simon Bolivar, as an alternative to U.S.-backed free-trade pacts.

Cuba is the last stop on a four-nation tour, which also included visits to Peru and Brazil and talks in Caracas with Bolivia's Evo Morales and Nicaragua's Daniel Ortega.

Medvedev said he also discussed the global financial crisis with Chavez, and "exchanged different ideas of what actions to take in this situation." Chavez blames the financial crisis on U.S. free-market capitalism.

Venezuela has bought more than $4 billion in Russian arms, including Sukhoi fighter jets, helicopters and 100,000 Kalashnikov rifles.

Medvedev pledged to keep supplying Chavez with weapons, saying Russia has a "pragmatic relationship" with Venezuela and the arms sales aren't meant to threaten any country.