Monday's afternoon trade: US markets flat

US stocks were little changed on Monday as investors awaited companies' quarterly results to see if earnings would be strong enough to spark further gains in equities. Alcoa Inc, a Dow component, unofficially launches the earnings season with the release of results after the market's close.
While profits for S&P 500 companies are seen rising 11.4 percent from a year ago, according to Thomson Reuters data, some have speculated that the growth is already priced into shares. Optimism over earnings has contributed to recent gains, despite turmoil in oil-producing regions and the disasters in Japan. The S&P 500 index is up 5.8 percent since the start of the year, but light trading volume has prompted questions about the rally's sustainability.
Alcoa slid 1.1 percent to $17.72 after rising earlier. The aluminium maker is seen posting growth in both earnings and revenue. J.P. Morgan Chase & Co and Google Inc are on tap to report later in the week. "There's a question of whether companies can meet the fairly optimistic expectations," said John Carey, portfolio manager at Pioneer Investment Management in Boston, which has about $260 billion in assets under management. "There's potential for disappointment, but if they come in line or above the market could experience a continued rally."
Carey said he expects earnings to be strong, "but there were a lot of odd things that happened during the quarter that could affect results," citing higher prices for raw materials. The Dow Jones industrial average was up 5.03 points, or 0.04 percent, at 12,385.08. The Standard & Poor's 500 Index was down 2.78 points, or 0.21 percent, at 1,325.39. The Nasdaq Composite Index was down 11.99 points, or 0.43 percent, at 2,768.43.
NYSE Euronext on Sunday rejected a joint buyout bid from Nasdaq OMX Group and IntercontinentalExchange and said it was sticking with an earlier bid from Deutsche Boerse AG. Nasdaq reaffirmed that its offer was superior to Deutsche Boerse's lower offer. NYSE shares fell 2.1 percent to $37.90 while Nasdaq OMX fell 1.4 percent to $28.04 and ICE was 0.3 percent higher at $120.86.
Also in deal news, Endo Pharmaceuticals Holding Inc said it would buy American Medical Systems Holdings Inc for about $2.6 billion while Level 3 Communications Inc agreed to buy Global Crossing Ltd for $1.9 billion in stock. Endo rallied 2,6 percent to $41.92 while American Medical jumped 32 percent to $29.46. Level 3 rose 8.7 percent to $1.57 and Global Crossing surged 55 percent to $23.00.
Biogen Idec Inc rose 6.5 percent to $78.04 and was the top percentage gainer on the Nasdaq 100 after the company's experimental multiple sclerosis drug met the main goal in the first of two important late-stage studies. Flextronics International was the top percentage loser on the Nasdaq 100, falling 3.5 percent, after rival Benchmark Electronics Inc cut its first-quarter outlook, citing soft demand.
Tenet Healthcare Corp said it has sued its suitor, Community Health Systems Inc, claiming the rival hospital operator improperly admitted patients to overbill insurers, including Medicare. Shares of Tenet sank 15.5 percent to $6.38 while Community slumped 34 percent to $26.45.