US STOCKS-Markets fall on earnings caution, energy selloff

                                
 * Alcoa falls ahead of reporting results
                                
 * Energy stocks fall as crude lower
                                
 * Tenet Healthcare sues Community Health Systems
                                
 * Dow up 0.01 pct, S&P down 0.3 pct, Nasdaq down 0.3 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to close)
                                
 By Edward Krudy
                                
 NEW YORK, April 11 (Reuters) - Stocks mostly fell on Monday
as energy shares sold off on lower oil prices, and as the
earnings season onset was clouded by concern company outlooks
may fall short of expectations.
                                
 Worries that increased raw material costs and the effects
from Japan's earthquake may affect coming quarters will put
companies' forward-looking statements under increased
scrutiny.
                                
 Aluminum maker Alcoa Inc <AA.N>, a Dow component, launched
the earnings season with the release of results after the
market's close.
                                
 "Companies are going to be trying to dampen expectations
for the second quarter," said Subodh Kumar, chief investment
strategist at Subodh Kumar & Associates in Toronto. "The market
focus is more internal as to whether it's gone up too fast.
                                
 Energy shares fell as U.S. crude futures slid on
profit-taking. Occidental Petroleum <OXY.N> fell 3.2 percent to
$100.42 while the S&P energy index <.GSPE> fell 1.9 percent.
                                
 Profits for S&P 500 companies are seen rising 11.4 percent
from a year ago, according to Thomson Reuters data, but much of
that may be priced into shares. The S&P 500 is up over 5
percent this year. For details, see [ID:nN07256466]
                                
 Optimism over earnings contributed to recent gains,
despite turmoil in oil-producing regions and the disasters in
Japan. Despite the S&P 500's gains this year, light trading
volume has prompted questions about the strength of the rally.
                                
 The Dow Jones industrial average <.DJI> rose 1.06 points,
or 0.01 percent, at 12,381.11. The Standard & Poor's 500 Index
<.SPX> fell 3.71 points, or 0.28 percent, at 1,324.46. The
Nasdaq Composite Index <.IXIC> lost 8.91 points, or 0.32
percent, at 2,771.51.
                                
 U.S. crude oil futures ended 2.5 percent lower as investors
heeded a recommendation from top brokerage Goldman Sachs that
they take profits after the recent rally.
                                
 Alcoa shares slid 0.8 percent to $17.77 after rising
earlier. The company was seen posting growth in both earnings
and revenue. JPMorgan Chase & Co <JPM.N> and Google Inc
<GOOG.O> are on tap to report later in the week.
                                
 In corporate news, Tenet Healthcare Corp <THC.N> said it
has sued its suitor, Community Health Systems Inc <CYH.N>,
claiming the rival hospital operator admitted patients for
unneeded stays to overbill insurers, including Medicare.
                                
 Shares of Tenet sank 14.7 percent to $6.44 while Community
slumped 36 percent to $25.89. [ID:nN11291765]
                                
 NYSE Euronext <NYX.N> on Sunday rejected a joint buyout bid
from Nasdaq OMX Group <NDAQ.O> and IntercontinentalExchange
<ICE.N> and said it was sticking with an earlier bid from
Deutsche Boerse AG <DB1Gn.DE>. Nasdaq reaffirmed that its offer
was superior to Deutsche Boerse's lower offer. [ID:nN10204369]
                                
 NYSE shares fell 2.9 percent to $37.59 while Nasdaq OMX
fell 1.5 percent to $28.03 and ICE was unchanged at $120.55.
                                
 Also in deal news, Endo Pharmaceuticals Holding Inc
<ENDP.O> said it would buy American Medical Systems Holdings
Inc <AMMD.O> for about $2.6 billion while Level 3
Communications Inc <LVLT.O> agreed to buy Global Crossing Ltd
<GLBC.O> for $1.9 billion in stock. [ID:nL3E7FB1PZ] and
[ID:nL3E7FB29F]
                                
 Endo rose 0.5 percent to $41.06 while American Medical
jumped 32 percent to $29.50. Level 3 rose 18.1 percent to $1.70
and Global Crossing surged 69 percent to $24.97.
                                
 Biogen Idec Inc <BIIB.O> rose 7.2 percent to $78.55 and was
the top percentage gainer on the Nasdaq 100 <.NDX> after the
company's experimental multiple sclerosis drug met the main
goal in the first of two important late-stage studies.
[ID:nN11283786]
 (Editing by Leslie Adler)