Stocks Drop, Oil Prices, AIG Take Toll By Megan Davies NEW YORK (Reuters) - U.S. stocks fell on Thursday as oil prices surged, while insurance giant American International Group Inc. (AIG.N: Quote , Profile , Research ) weighed on the Dow after acknowledging accounting errors and losing a prestigious credit rating. U.S. light crude (CLc1: Quote , Profile , Research ) for May delivery surged $1.76 to $55.70 a barrel as Goldman Sachs, the biggest trader of energy derivatives, said oil markets have entered a "super-spike" period that could see prices rising as high as $105 a barrel. High oil prices generally hurt equities because they impact corporate profit margins and consumer spending. The Dow Jones industrial average was down 38.35 points, or 0.36 percent, at 10,502.58. The Standard & Poor's 500 Index was down just 0.83 of a point, or 0.07 percent, at 1,180.58. The Nasdaq Composite Index was down 9.16 points, or 0.46 percent, at 1,995.51. The lackluster session came a day after U.S. stocks staged their biggest rally in nearly four months. Investors were cautious on Thursday ahead of Friday's closely watched U.S. jobs report for March. "Oil is right back up and is therefore pressuring stocks," said Peter Boockvar, equity strategist at Miller Tabak & Co. "Ahead of important data tomorrow, the market is a little reticent to have another day like yesterday." But soaring oil prices boosted Exxon Mobil Corp. (XOM.N: Quote , Profile , Research ) , 1.3 percent higher at $59.99, and ChevronTexaco Corp. (CVX.N: Quote , Profile , Research ) , up 0.6 percent at $58.62. Economic reports indicated that the U.S. economy seemed to be on firm footing, with strong consumer spending, moderate inflation and a robust outlook for Midwest factories. But a jump in first-time jobless claims last week helped dim some of the optimism. Among stocks falling, AIG fell almost 3 percent to $55.54. On Wednesday, AIG acknowledged accounting errors that could stretch back 14 years and Standard & Poor's cut AIG's prestigious "AAA" debt rating. Shares of Johnson & Johnson (JNJ.N: Quote , Profile , Research ) slid 1.5 percent to $67.06 and Biomet Inc. (BMET.O: Quote , Profile , Research ) fell 7.6 percent to $36.07 after several orthopedic device makers received subpoenas in a federal probe of their relationships with surgeons. But Morgan Stanley (MWD.N: Quote , Profile , Research ) rose 3 percent to $56.93 amid speculation that rising shareholder pressure on Chief Executive Philip Purcell could force his ouster or prompt the Wall Street firm to sell itself to a big bank. Quelle "Stocks Drop, Oil Prices, AIG Take Toll" : reuters.com Main page for "Stocks Drop, Oil Prices, AIG Take Toll"