* U.S. stocks end little changed
* U.S. durable goods orders surge, business spending weak
* U.S. oil ends lower after hitting $50 a barrel
(Updates with U.S. markets' closing levels)
By Caroline Valetkevitch
NEW YORK, May 26 (Reuters) - Oil prices eased on Thursday
after topping $50 a barrel for the first time in about seven
months, while U.S. stocks ended near flat after two days of
strong gains.
Concern that robust oil price gains could encourage more
output weighed on the energy market. Oil futures have risen
nearly 90 percent from 12-year lows hit this winter.
"The global surplus still exists and there is still a
possibility that oil prices could retrace further," said
Dominick Chirichella, senior partner at the Energy Management
Institute in New York.
Brent LCOc1 dipped 15 cents to settle at $49.59 after
earlier rising to $50.51, its highest level since early
November. U.S. crude futures CLc1 fell 8 cents to settle at
$49.48 after rising to $50.21, the highest level since
mid-October.
U.S. stocks ended nearly flat after gaining 2 percent over
the previous two sessions, with advancing defensive sectors
offsetting declines in materials, banks and other cyclical
industries.
Equity investors this week have grown more comfortable with
expectations the Federal Reserve could raise interest rates as
soon as June, with many taking the view that such a hike would
reflect improvement in the country's economy.
"People are taking their foot off the gas after making a
bunch of money, and now they're waiting for the next data
point," said Phil Blancato, chief executive of Ladenburg
Thalmann Asset Management in New York.
The Dow Jones industrial average .DJI ended down 23.22
points, or 0.13 percent, at 17,828.29, the S&P 500 .SPX lost
0.44 points, or 0.02 percent, to 2,090.1 and the Nasdaq
Composite .IXIC added 6.88 points, or 0.14 percent, to
4,901.77.
MSCI's all-country world stock index .MIWD00000PUS rose
0.2 percent, while the FTSEurofirst 300 .FTEU3 closed up 0.2
percent.
The U.S. dollar index, which measures the greenback against
a basket of six major currencies, was down 0.2 percent as data
on U.S. durables orders added to uncertainty surrounding the
outlook for rates. .DXY
Orders for long-lasting U.S. manufactured goods surged in
April on strong demand for transportation equipment and a range
of other products. But U.S. business spending intentions
weakened in April for a third straight month amid soft demand
for machinery.
Investors are looking ahead to a speech by Fed Chair Janet
Yellen on Friday for more clues on the U.S. rate outlook.
In the U.S. Treasuries market, prices rose as solid bidding
at a $28 billion seven-year note sale reignited bond demand.
Benchmark 10-year Treasury notes US10YT=RR were up 10/32
in price, yielding 1.833 percent, down 4 basis points from late
on Wednesday. The two-year yield US2YT=RR was down 4 basis
points at 0.875 percent.
Gold fell, reversing early gains. Spot gold XAU= was down
0.3 percent at $1,220.16 an ounce.