Tuesday's early afternoon trade: indexes flat as oil drops

US stocks were little changed on Tuesday as a $2 drop in oil hurt energy shares and offset optimism about the earnings reporting season under way.
Shares of network equipment maker Cisco Systems Inc were the biggest drag on the Nasdaq after analysts at Banc of America Securities and Prudential cut their investment ratings on the stock.
The fall in crude futures below $51 a barrel weighed on oil companies like Exxon Mobil Corp, but the prospect of lower energy costs helped other sectors. Transportation stocks, in particular, were sharply higher, with the Dow Jones Transportation Average up 1.8 percent.
"The energy sector is what's holding the S&P flat, but seven of the other nine sectors are positive," said John Augustine, chief investment strategist at Fifth Third Asset Management in Cincinnati. "The environment to us today is very positive, with bond yields headed lower along with oil. To us, the market is just pausing now to assess earnings."
The Dow Jones industrial average was down 4.17 points, or 0.03 percent, at 12,551.91 after earlier climbing to a record 12,585.08. The Standard & Poor's 500 Index was down 0.97 point, or 0.07 percent, at 1,429.76. The Nasdaq Composite Index was down 4.90 points, or 0.20 percent, at 2,497.92.
On the earnings front, Wells Fargo & Co, the No 5 US bank, rose after it said fourth-quarter profit increased 13 percent. Wells Fargo rose 1.7 percent to $36.12 on the New York Stock Exchange, making it the biggest positive driver on the S&P 500. Cisco fell 2.9 percent to $28.10 on the Nasdaq.
The biggest name on the earnings calendar for Tuesday, tech bellwether Intel Corp, doesn't report until after the closing bell. Intel's stock was down 0.3 percent at $22.06. Shares of Exxon fell 1.4 percent to $71.68. ConocoPhillips stock lost 1.2 percent to $63.07.
In addition to the relief on oil prices, transportation shares got a boost from a J.P. Morgan ratings upgrade of FedEx to "overweight." Citigroup also lifted its price target on JetBlue Airways , Southwest Airlines, AMR Corp.
FedEx shares gained 2.5 percent to $111.55, while Southwest shares rose 1.4 percent to $16.45, both on the Big Board. AMR's stock jumped 6.2 percent to $39.89 on the NYSE and JetBlue was up 0.8 percent at $16.69 on the Nasdaq.