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US STOCKS-Wall St little changed, S&P briefly passes 1,130

Published 09/17/2010, 10:44 AM
Updated 09/17/2010, 10:48 AM

* Oracle, RIMM jump after qtrly results

* Consumer sentiment unexpectedly worsens

* Dow off 0.1 pct, S&P up 0.02 pct, Nasdaq up 0.2 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)

By Leah Schnurr

NEW YORK, Sept 17 (Reuters) - The S&P 500 briefly pierced a key resistance level on Friday, but stocks failed to hold gains after data showed consumer sentiment unexpectedly worsened in early September.

Solid earnings from technology bellwethers Oracle Corp and Research In Motion Ltd limited declines, keeping major indexes little changed in mid-morning trading.

Consumer sentiment fell to its weakest level in more than a year, a private survey showed, as worries over jobs and finances intensified. Earlier, the government said consumer prices increased slightly more than expected in August, but core prices were flat. For details, see [ID:nN17123808] [ID:nN17137976]

The S&P managed to briefly overcome key technical resistance around 1,130, pushing through intraday highs set in June and August. The level has represented the top of a trading range for months, and a decisive move above it could be a bullish sign.

"Clearly coming into today on a short-term basis we were in a minor uptrend, and the bulls showed they were in command of the marketplace in opinion or buying power," said Jeffrey Friedman, senior market strategist at Lind-Waldock in Chicago.

If indexes are unable to regain ground before the close of trading, "it's going to question that concept," said Friedman.

Support for the S&P 500's 200-day moving average remains around 1,116, a level it vaulted on Monday.

The Dow Jones industrial average <.DJI> dipped 7.56 points, or 0.07 percent, to 10,587.27. The Standard & Poor's 500 Index <.SPX> added 0.17 points, or 0.02 percent, to 1,124.83. The Nasdaq Composite Index <.IXIC> rose 4.43 points, or 0.19 percent, to 2,307.68.

The quarterly settlement and expiration of four different types of September equity futures and options contracts, also known as "quadruple witching," conclude later Friday, which can add volatility to the market.

Oracle, the world's No. 3 software maker, and Research In Motion, which makes the BlackBerry smartphone, were the top leaders on the Nasdaq after both posted better-than-expected results and gave outlooks that topped expectations.

Oracle shot up 6.4 percent at $26.99, while RIM rose nearly 2 percent to $47.29.

Texas Instruments Inc gained 1.8 percent to $25.43 after the chipmaker increased its stock repurchase program and boosted its quarterly dividend by 8 percent. [ID:nN16252092] (Editing by Jeffrey Benkoe)

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