* FedEx shares fall on 2011 cost concerns
* Housing data disappoints, industrial production surges
* Apple shares jump as iPhone sales above some estimates
* Dow up 0.1 pct, S&P off 0.1 pct, Nasdaq flat
* For up-to-the-minute market news see []
(Updates with historical index performance in paragraph 8)
By Edward Krudy
NEW YORK, June 16 (Reuters) - U.S. stocks finished flat on
Wednesday as cautious comments from FedEx <FDX.N> and weak
housing market data overshadowed a surge in industrial
production.
Investors were caught off guard after package company
FedEx Corp <FDX.N>, deemed an economic bellwether because it
serves a wide range of industries, said higher costs would
constrain 2011 earnings. FedEx shares slid 6 percent to
$78.07. []
The U.S. government said housing starts fell more than
expected in May, underscoring the uneven nature of the
economic recovery and casting a shadow over
better-than-expected industrial production data for the same
month.
The market's slow churn kept the S&P 500 above its 200-day
moving average a day after the index exceeded that level for
the first time in a month. Investors took that as a positive
signal because they view the 200-day average as an important
momentum indicator.
"Essentially, the market has held on to yesterday's gains
and you have to call that encouraging," said Michael Sheldon,
chief market strategist at RDM Financial in Westport,
Connecticut.
The Dow Jones industrial average <> added 4.69 points,
or 0.05 percent, to 10,409.46. The Standard & Poor's 500 Index
<.SPX> edged down just 0.62 of a point, or 0.06 percent, to
1,114.61. And the Nasdaq Composite Index <> inched up
just 0.05 of a point, or 0.00 percent, to 2,305.93.
Wednesday's session left the Dow and the S&P 500 just
below the break-even point for the year, while the Nasdaq is
up 1.6 percent for 2010.
Stocks have fallen sharply since a recent closing high on
April 23, mainly on fears of slower growth and unsustainable
public debt in the euro zone. The S&P 500 is still down 8.4
percent since that date after falling nearly 14 percent to an
intraday closing low on June 7.
BP, APPLE AND 3M CLIMB
On the closely watched energy front, BP Plc agreed to U.S.
President Barack Obama's demand to place about $20 billion in
a special fund to pay damage claims from the Gulf of Mexico
oil spill.
The British company also said it would not pay dividends
to its shareholders this year. BP also said it plans to reduce
its investment program and sell $10 billion of assets for a
planned fund to cover the costs related to its Gulf of Mexico
oil spill. [] and [].
BP's New York-traded shares rose 1.5 percent to close at$31.85, after earlier climbing as much as 5.1 percent to an
intraday high at $33.
"The market expected it, and everyone was prepared for
this, which is the only reason the stock is reacting the way
it is," said Chip Hanlon, president of Delta Global Advisors
in Huntington Beach, California.
Shares of some U.S. drillers and other energy companies
also advanced, with Halliburton Co <HAL.N> up 3.1 percent at
$26.25.
Strong sales from Apple Inc<AAPL.O>, which said it sold
600,000 of its iPhone 4 smartphones in a single day of
pre-orders, helped cushion the Nasdaq. Apple's stock was up
2.9 percent at $267.25.
Before the opening bell, the Federal Reserve Board
reported that industrial output surged 1.2 percent in May,
partly due to a spike in utility production, and a solid gain
of 0.9 percent in factory output. []
Shares of 3M Co <MMM.N>, a diversified manufacturer, rose
1.4 percent to $80.88 and ranked as the Dow's biggest positive
influence.
"The industrial production number is saying that demand is
still there, production is still there," said Marc Pado, U.S.
market strategist at Cantor Fitzgerald & Co. in San Francisco.
"That's telling me there is going to be a nice little increase
in profit margins, even on flat revenue."
WORRIES ON THE HOME FRONT
But reflecting the housing sector's struggles, the U.S.
government said housing starts fell more than expected in May,
hitting a five-month low, after a federal homebuyer tax credit
expired.
The Morgan Stanley housing index <.HGX> fell 1.6 percent.
The index tracks the shares of U.S. companies in the housing
sector, including home builders like PulteGroup Inc <PHM.N> as
well as lumber companies like Weyerhaeuser Co <WY.N>.
Pulte shares slid 1.8 percent to $9.75, while Weyerhaeuser
lost 2 percent to $39.95.
About 8.40 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, well below
last year's estimated daily average of 9.65 billion.
Declining stocks outnumbered advancing ones on both the
NYSE and the Nasdaq by a ratio of about 3 to 2.
(Reporting by Edward Krudy; Editing by Jan Paschal)
