Markets closed mixed Friday, a confusing ending to a chaotic week that began with the seizure of mortgage giants Fannie Mae and Freddie Mac and ended with the possible demise of Lehman Brothers, Wall Street’s oldest major investment bank.

Investors seemed wary of committing one way or the other as questions linger both about the health of the financial sector and where oil will head after slipping below $100 a barrel for the first time since April.

Today's Market

The Dow Jones Industrial Average fell 11.72 points, or 0.10% to 11421.99, the Standard & Poor’s 500 added 2.65 points, or 0.21%, to 1251.70 and the Nasdaq Composite picked up 3.05 points, or 0.14%, to 2261.27. The FOX 50 dropped 1.72 points, or 0.19%, to 902.84.

While the markets failed to build significantly on Thursday's solid gains, they did climb out of what was another ugly opening bell. Aside from the action in the energy market and the spotlight on Lehman Brothers (LEH), Wall Street reviewed a mixed batch of economic reports that showed rising consumer sentiment and tumbling retail sales. 

“If you thought the week was crazy just wait for the weekend because we have a lot that could happen," said Art Hogan, chief market strategist at Jeffries & Co. "We thought we had some stabilization in this market [with the rescue of Fannie and Freddie]…only to [see] that Lehman was going to come pretty close to the precipice. It’s been quite a roller coaster.”

AIG (AIG) was hands down the biggest loser on the Dow, plunging 30% on its exposure to the mortgage market and Lehman Brothers. General Electric (GE) and Citigroup (C) were among the other biggest drags on the Dow. On the upside, General Motors (GM) erased early losses to close higher on hopes of a government bailout. Also, energy giants ExxonMobil (XOM) and Chevron (CVX) benefited from higher oil prices. 

Wall Street responded positively to crude oil futures, which Friday afternoon momentarily slipped below the psychologically-important $100-a-barrel level for the first time since April. However, oil prices rebounded off those levels, closing up 31 cents to $101.18 a barrel. Fittingly, oil was pushed below $100 a barrel by a single trade made by the same man who first pushed the commodity over $100 a barrel earlier this year. 

The energy market has largely shrugged off several bullish factors this week, including OPEC's decision to cut production and the threat of Hurricane Ike in the Gulf of Mexico.

Crossing below $100 a barrel marks a stark turnaround for the commodity, which had set an all-time record of $145 a barrel just two months ago. Since hitting those levels and pushing gasoline prices above $4 a gallon, oil has been pushed lower by weakened demand and the threat of a global economic slowdown. 

All Eyes On Lehman

Lehman Brothers resumed its plunge on Friday as the embattled investment bank heads into what could be a fateful weekend. The latest dive comes even as reports swirl of potential suitors for Lehman, including Bank of America (BAC), Barclays (BCS) and Nomura (NMR), the Japanese banking giant. Also, the Financial Times reported BofA, private-equity firm JC Flowers and China Investment Co., the Chinese sovereign wealth fund, are considering a joint bid for Lehman. 

Questions not only remain about who may ultimately buy Lehman Brothers, but who controls that final decision. Former Lehman insiders tell FOX Business’s Liz Claman that any deal has to have the blessing of Treasury Secretary Hank Paulson. The Federal Reserve, led by New York Fed President Timothy Geithner, are also engaged in the talks and are trying to facilitate a deal. It is widely believed the government would want a deal to be secured before Asian markets open Sunday evening New York time. 

The need for CEO Dick Fuld to sell his firm has been accelerated this week by the company's plunging share price and the threat of further credit ratings downgrades, which would likely make Lehman trading partners even more apprehensive. Lehman pre-announced a loss of nearly $4 billion earlier this week and announced a series of moves, such as spinning off its commercial real estate assets, that failed to end the stock's plunge. 

The news conjures up images of both the mid-March collapse of Bear Stearns, which sold itself to JPMorgan Chase (JPM) in a fire sale, and Fannie Mae (FNM) and Freddie Mac (FRE), the mortgage giants seized by regulators only a week ago.

Meanwhile, Washington Mutual (WM) could soon be sold as well. According to the American Banker, JPMorgan Chase is in advanced talks to buy WaMu, the nation's largest savings-and-loan. However, The Wall Street Journal reported that a person close to WaMu downplayed the possible JPMorgan talks. In either case, WaMu's stock has been slammed this week, forcing the company to pre-announce third-quarter financial projections late Thursday.  

AIG, the world's largest insurer, lost nearly one-third of its value on Friday as the company's credit protection costs soared. The insurer's ugly day came without any major news but amid continued fears on Wall Street about the nation's financial sector. 

Also, Merrill Lynch (MER) remains under heavy fire, with its shares sinking by double-digit percentages again. Similar to Lehman predicament, Merrill’s heavy exposure to the mortgage market has sparked fears about its future.

Data Dump

Wall Street had a mixed reaction to the day's economic reports, including one that showed retail sales declined by 0.3% in August. The Commerce Department was expected to report a 0.3% increase in sales. The report marks the second monthly decline in a row. Wall Street closely watches retail sales figures because they help gauge the level of consumer spending, which accounts for more than two-thirds of the nation's economy. 

Speaking of consumer spending, the Reuters/University of Michigan mid-September consumer sentiment index rose to a 73.1 reading. Wall Street had been expecting a more modest 64.0 reading. Sentiment has been ticking upwards since July as oil and gas prices have cooled. 

Offsetting that news, the Labor Department said wholesale inflation dove in August by 0.9% -- the fastest rate in almost two years. Wholesale inflation, which is measured by the producer price index, has moderated over the past several months. Economists had been expecting a more modest 0.4% decline. Excluding energy and food prices, core inflation rose by 0.2% in August, in line with expectations. 

Corporate Movers

General Motors (GM) and Ford (F) saw their shares jump on hopes the federal government will step in to bail out the ailing auto giants. Ford CEO Alan Mulally sparked the hopes when he said on CNBC he is optimistic the car makers will receive federal loans. Also, a Goldman Sachs analyst said “it is more likely than not” a loan program would receive at least some funding before Congress recesses this fall. A Deutsche Bank analyst echoed that sentiment, saying there is “an increased probability” GM and Ford will get $25 billion in loans.

Deutsche Bank (DB) bought a 29.75% stake in German postal company Postbank for 2.79 billion Euros. The deal, which Deutsche Bank expects to close in the fourth quarter, holds an option to acquire an additional 18% in Postbank. Deutsche Bank hopes to gain more access to Germany’s retail banking market from the acquisition.

Foster Wheeler (FWLT) released plans to purchase up to $750 million of its shares, sending the engineering and construction company’s stock soaring. Stock buybacks are often used when companies feel their shares are cheap.

GameStop (GME) saw its shares slide after market researcher NPD Group said video game sales growth grew by single digits for the first time in more than two years. According to NPD, U.S. retail video game sales grew by 9% last month to $994.8 million. Comparatively, July sales jumped 28% to $1.19 billion. The news appeared to hurt shares of electronics retailer Best Buy (BBY) as well. 

Global Markets

The Dow Jones Euro Stoxx 50, the index that tracks the 50 largest companies in Europe, closed up 55.92 points, or 1.74%, to a reading of 3278.02.

In Asia, Tokyo's Nikkei 225 Index gained 112.26 points to 12214.76 while Hong Kong's Hang Seng fell 35.82 points to 19352.90.