U.S. stocks drift between gains and losses

U.S. stocks drift between gains and losses as Boeing Co. fell on concern that could delay its new 787 Dreamliner and the deterioration of Intel Corp. dragged on technology shares.

Boeing fell 2.7 percent after the Seattle Times reported the company was preparing to announce a new delay to the 787. Intel fell 0.8 percent after a Wall Street Journal report that the proposed purchase of chip maker McAfee Inc. is facing antitrust scrutiny from Europe. American Express Co. fell 4.1 percent after Stifel Nicolaus & Co. cut its rating on the stock.

The S & P 500 rose less than 0.1 percent, to 1,244.47 at 11:45 am in New York after gaining 0.3 percent in early trading. The Dow Jones industrial average fell 33.72 points, or 0.3 percent, at 11,458.19. benchmark indexes fell to their lows of the day after Moody's Investors Service cut its rating on some Irish lenders and debt.

"It's going to be bumpy," said Jason Pride, director of investment strategy at Glenmede in Philadelphia, which manages $ 19 billion. "We do not expect European issues to disappear in the short term. The market is particularly vulnerable to any news, even as we see improvement in U.S. economic and corporate fundamentals. Should be a week very light in terms volume and increases the potential for more volatility. "

U.S. equities climbed the last three weeks, sending the S & P 500 to a data set in two years, as stronger than expected in retail sales, housing construction and increased confidence in economic recovery. The S & P 500 rose 12 percent this year through Dec. 17 as the Fed expanded a plan to buy bonds to stimulate the economy and corporate profits beat estimates.

European shares

Shares acquired in Europe, the Stoxx Europe 600 Index up to 1.1 percent to its highest level since the September 12, 2008.

Federal Reserve Bank of St. Louis, James Bullard, president of U.S. said the gross domestic product in 2011 will be stronger than people thought. Bullard, who spoke in an interview with CNBC, also said that the decline in U.S. unemployment be a slow process. "We must walk before we can run here," he said.

"We are optimistic about the possibility of actions well next year as geopolitical tensions and other risks are left out," said Andrew Milligan, head of global strategy at Standard Life Investments Ltd. in Edinburgh. "This market is largely driven by revenue growth, but those expectations will be more moderate as the year unfolds." His company oversees 222 billion U.S. dollars worldwide.

Depressions Technology

Intel fell 0.8 percent to $ 21.29. proposed purchase of chip maker McAfee Inc. world faces antitrust scrutiny from European Union, which can start a lengthy "phase two" of research, the Wall Street Journal, citing unidentified sources.

Boeing had the second biggest drop in the Dow sinks 2.7 percent to $ 63.30. The world's biggest airline said it would increase the production rate of 777 for the second time this year in their fight to delay the 787 Dreamliner.

American Express fell more in the Dow, declining 4.1 percent to $ 42.20. The largest issuer of credit cards for purchases US-shortened to "hold" from "buy" Stifel Nicolaus & Co.

Huntington Bancshares Inc. added 4 percent to $ 6.48. The Columbus, an Ohio-based bank was raised to "buy" from "neutral" in the Bank of America Corp.

SLM Corp. had the biggest increase in the S & P 500, rising 6.6 percent to $ 12.86. The maker of student loans can go up to the "young high" during the next 18 months and could attract a buyer, Barron's, citing anyone.

Chesapeake Energy Corp. advanced 6.9 percent to $ 24.90. Carl Icahn, the billionaire investor, increased its share of natural gas producer to an equivalent of 5.8 percent, according to a regulatory filing. Icahn has taken and intends to seek further discussions with Chesapeake.