US stocks barely budged at midday on Monday as energy companies' shares gained on higher oil prices due to supply worries related to tensions over Iran's nuclear program, while earnings worries weighed on health insurance stocks.
The Dow average's biggest gainer was Alcoa Inc, after an investment company's upgrade, while oil company Exxon Mobil Corp ranked second among blue chip advancers. Energy companies' stocks were among the top gainers in the broad Standard & Poor's 500 Index.
But investors sold some health insurance stocks after Humana Inc failed to raise its outlook and reported revenue below expectations. Humana fell 2.7 percent to $53.44, dragging down others in the sector.
The Dow Jones industrial average was up 0.64 of a point, or 0.01 percent, at 10,794.26. The Standard & Poor's 500 Index was up 0.69 of a point, or 0.05 percent, at 1,264.72. But the Nasdaq Composite Index was down 3.79 points, or 0.17 percent, at 2,258.79.
Weighing on the Nasdaq was Sears Holdings Corp, which said it was moving forward with its offer to buy the remaining stake in Sears Canada Inc and planned to mail details of its take-over bid this week. The stock of Sears, the parent of retailers Sears and Kmart, fell 1.3 percent to $117.90.
Oil prices climbed after Iran, Opec's second-biggest producer, resumed uranium enrichment and sparked fears it might ultimately withhold exports. US crude for March delivery was up 48 cents at $65.85 a barrel on the New York Mercantile Exchange.
"Oil is always a negative factor for most stocks other than the ones in the energy sector. And that, combined with an absence of economic data, is contributing to some lack of interest in the stock market" today, said Tom Schrader, managing director for US equity trading at Stifel Nicolaus Capital Markets in Baltimore. Exxon Mobil Corp gained 1.4 percent to $62.26 and ConocoPhillips rose 1.4 percent to $63.35.
While lifting shares of energy companies, higher oil prices usually depress the broader stock market because they threaten to squeeze profits of most companies by raising their costs. Rising energy costs also can put a damper on consumer spending.
"On the bright side," Schrader added, "the series of company upgrades are certainly welcome and are helping those stocks."
Alcoa, the world's largest aluminium producer, rose 3.5 percent to $31.66 on the New York Stock Exchange after it was upgraded by J.P. Morgan analysts to "overweight," MarketWatch reported on its Web site. Alcoa's gains came as world metals markets were buoyant, with an investment-led commodity market boom keeping prices near record highs.
Nike Inc shares rose 0.5 percent to $84.14 after UBS upgraded its rating on the athletic shoe maker and Barron's, a weekly financial newspaper, said its shares may rise this year.
In the health care sector, shares of Aetna Inc fell 0.8 percent to $97.56 and the stock of Cigna Corp slipped 1.2 percent to $119.86. A Standard & Poor's index of health care companies fell 0.8 percent.
Shares of General Motors Corp, the world's largest auto maker, gained 1.2 percent to $23.43. GM's board of directors is reviewing whether to maintain its $2-per-share annual dividend rate. Investor Kirk Kerkorian is urging GM to cut that dividend in half.
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