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Small-cap stocks edged higher Wednesday in an exceptionally quiet, tight-range pre-holiday session. A mixed bag of economic data failed to spark trading fervor in either direction, while slumping energy and commodity markets acted as a mild drag on the market. The Russell 2000 (NYSE:IWM) closed up 1.85, or 0.4% at 470.49, snapping a two-day losing streak in an abbreviated session before the Christmas holiday.

A fresh batch of economic releases this morning came in predictably awful, but some segments of the data weren’t as gloomy as feared, which allowed bargain hunters the courage to snap up a few beaten down stocks in what turned out to be one of the dullest sessions in months. The price range in the Russell today amounted to less than 8 handles, easily the thinnest motion in what has been a raucous four-month time frame.

Looking at broad market sector activity today, the best performing groups were seen in airlines, brewers, footwear companies, department stores, electronic components, diverse financial firms and general merchandise stores. On the flip side, the worst performers were coal stocks, homebuilders, aluminum companies, insurance firms, industrial conglomerates, construction materials, real estate investment trusts and real estate services firms.

Crude oil prices continue to slump, pushing down despite a surprising drop today on weekly inventories as energy traders continue to fret about a recession for major customers like the U.S., Japan and the U.K. and slowing demand out of China. Elsewhere on the commodity front, copper prices edged down to four-year lows in London trading, which is a worry point because copper is considered a nice proxy for the world economy. Even though crude oil cash prices have been plunging of late, energy stocks have been trying to hang tough and only dropped about 0.5% today.

Small-cap stocks remained higher into the midday time frame, but the market did pull back well off the morning highs. A White House lifeline to automakers lifted market sentiment, and tech stocks were solid performers, helping to counter declines in retail and some commodity names, but the morning rise appeared to be on precarious footing heading into afternoon trading. At 12:28 p.m. ET, the Russell 2000 (NYSE:IWM) was up 7.17, or 1.50%, at 486.34.

Looking at S&P sector activity, the best performers were industrial real estate investment trusts (REITS), automobile manufacturers, IT consulting firms, gas utilities companies, managed health care firms, home entertainment software — and interestingly, oil exploration, oil production, and oil equipment and services firms. In fact, energy stocks were actually up about 1% at midday, even though crude oil prices were down about $0.70 a barrel and tumbled to fresh 4 ½-year lows earlier today.

The market could be vulnerable to a “buy-the-rumor, sell-the-fact” response to the automaker bailout now that the aid package is a known event. The UAW (autoworkers union) has already asked President-elect Obama to step in and address “unfair” terms within the bailout package.

Looking again at sector activity, the poorest performing groups included forest products, steel companies, home improvement retailers, footwear manufacturers, department stores and apparel and accessories firms. The S&P Retail Index was off 2.2%. This is supposed to be the busiest shopping weekend of the year, but it will take a miracle to put a nice pretty Christmas bow on this recession-year . . .

The Russell 2000 (NYSE: IWM) and the Dow failed to hold mid-morning gains and slipped into negative territory by midday, as investors’ concerns about weak job reports sent stocks plunging. Before the opening, the Labor Department reported that payrolls plunged a greater-than-expected 63,000 in February, heightening recession fears and causing gyrations early in the session.

At 2:45 p.m. ET, the small-cap index was down 6.95 points, or 1.05%, to 655.83. The Dow Jones Industrial Average (INDU) had sunk 194.89 points, or 1.62%, to 11,845.50.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data come on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

The unemployment rate was essentially unchanged at 4.8%, compared with 4.9% in January. Economists were projecting the unemployment rate to edge up to 5%.

Average hourly earnings rose by $0.05, or 0.3%, over the month, according to the Labor Department.

The Federal Reserve’s statement this morning that it will increase the amount of loans it makes to banks failed to calm concerns and buoy the market. Specifically, the central bank augmented auctions of four-week funds to banks to $50 billion from its original $30 billion planned for March 10 and March 24. The Fed also said it will avail an additional $100 billion through repurchase agreements.

In a statement, Fed officials also stipulated that the central bank will continue auctions for at least six months, and would increase the size of such auctions further if needed.