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US STOCKS-Markets edge higher, though energy a drag

Published 09/15/2010, 12:58 PM
Updated 09/15/2010, 01:00 PM
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* Energy shares pressured by decline in crude prices

* Kraft shares rise after revenue forecast

* Micron shares fall after downgrade

* Indexes up: Dow 0.3 pct, S&P 0.1 pct, Nasdaq 0.3 pct (Updates to midday, changes byline)

By Ryan Vlastelica

NEW YORK, Sept 15 (Reuters) - Wall Street rose but was trapped in a tight trading range on Wednesday as investors, without a positive catalyst, hesitated after a recent run-up.

Energy and technology shares were among the top decliners, pressured by a fall in crude oil prices and bearish analyst comments. Despite that, the S&P seemed to find support at its 200-day moving average, rebounding above the 1,115 level after briefly falling through it.

"There's not much trading conviction for bulls or bears right now, and with markets as volatile as they have been, most investors have their hands in their pockets," said Paul Nolte, managing director at Dearborn Partners in Chicago.

Equities were little moved after the Japanese government intervened in global currency markets to sell yen for the first time in six years, though the U.S. dollar climbed.

October crude futures fell 1.6 percent to $75.60 per barrel, while the S&P Energy index fell 0.8 percent, the biggest percentage decliner among S&P sectors.

Chevron Corp slid 0.6 percent to $79.05 and was the top percentage decliner among Dow components.

On the upside, Kraft Foods Inc, another Dow component, gained 1.4 percent to $31.50 after saying it would squeeze another $1 billion in revenue from its global business by 2013 as its North American business faces challenges.

The Dow Jones industrial average rose 28.84 points, or 0.27 percent, at 10,555.33. The Standard & Poor's 500 Index added 1.20 points, or 0.11 percent, at 1,122.30. The Nasdaq Composite Index was up 7.16 points, or 0.31 percent, at 2,296.93.

Earlier, markets were pressured by a report showing a measure of New York state business conditions slipped to the lowest level in more than a year, while industrial output rose at a slower rate in August.

Though equities initially sold off on the news, they later recovered to keep strong September gains intact. The advances had come after a flurry of merger activity and positive data that suggested a double-dip recession was unlikely.

"Given how well markets have done in September, I suspect we'll hold around this level on the S&P until we get more housing data," Dearborn's Nolte said.

Goldman Sachs downgraded a pair of chipmakers after underestimating the negative impact of tablet computers on the personal computer supply chain.

Goldman cut Micron Technology Inc to "neutral," and the stock fell 4.9 percent to $6.92. The Philadelphia semiconductor index fell 0.7 percent.

MasterCard Inc advanced 6 percent to $211.60 after a bullish forecast for earnings growth.

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