US STOCKS-S&P, Nasdaq inch up after data; energy hurts Dow

                                
 * Energy shares fall as crude oil plummets
 * Initial jobless claims roughly in line with expectations
 * FedEx edges up 1.4 pct after posting profit
 * Dow down 0.4 pct; S&P up 0.1 pct, Nasdaq up 0.04 pct
                                
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[STXNEWS/US]
 (Updates to midday, changes byline)
                                
 By Deepa Seetharaman
                                
 NEW YORK, Dec 18 (Reuters) - The S&P 500 and the Nasdaq
crept slightly higher on Thursday, following economic data
that was not as weak as feared.
                                
 But the Dow fell, weighed by energy shares brought down by
the tumbling price of crude oil.
                                
 Chevron Corp <CVX.N> and Exxon Mobil <XOM.N> were the top
drags on the Dow as the price of oil <CLc1> slid to around $38
a barrel despite OPEC's record output cut.
                                
 Investors' optimism was bolstered in part by economic
data, including a survey that showed factory activity in the
U.S. Mid-Atlantic region shrank in December, but at a less
severe rate than the previous month.
                                
 The market's mood got a lift from swelling confidence that
the Fed's policy-makers were being aggressive in their efforts
to jumpstart the economy, which include the record rate cut on
Tuesday and a proposed stimulus package from President-elect
Barack Obama.
                                
 "We're truly throwing the kitchen sink into the financial
markets in the expectation that something is going to grab and
finally get the wheels going," said Paul Nolte, director of
investments at Hinsdale Associates in Hinsdale Illinois.
                                
 The Dow Jones industrial average <.DJI> fell 36.64 points,
or 0.42 percent, to 8,787.70. The Standard & Poor's 500 Index
<.SPX> inched up 0.94 of a point, or 0.10 percent, to 905.67.
The Nasdaq Composite Index <.IXIC> edged up 0.60 of a point,
or 0.04 percent, to 1579.91.
                                
 A smattering of positive earnings from companies,
including FedEx Corp <FDX.N> and Discover Financial Services
<DFS.N>, helped boost shares.
                                
 FedEx stock rose 1.4 percent to $64.86 after the huge
package delivery company reported a rise in quarterly profit.
However, the company said it expected a gloomy 2009.
[ID:nN18358181]
                                
 Discover, the fourth-largest U.S. credit-card network,
also posted a profit, helped by a $355 million gain from a
litigation settlement. Its stock shot up 13.3 percent to
$9.72. [ID:nN18468171]
                                
 The Philadelphia Federal Reserve Bank reported that
factory activity in the U.S. Mid-Atlantic region contracted
this month, but less than in November. [ID:nN18375988].
                                
 The number of U.S. workers filing new claims for jobless
benefits fell last week, Labor Department data showed,
although claims remain high and are more than 200,000 higher
than a year ago. [ID:nN18549452].
                                
 The energy sector slid after the drop in crude oil prices,
which was linked to a rise in U.S. oil inventories and the
expiration of the January futures contract on Friday.
                                
 Chevron <CVX.N> fell 2.1 percent to $75.18 on the New York
Stock Exchange and Exxon Mobil <XOM.N> lost 2.5 percent to
$79.01. The S&P energy index <.GSPE> shed 2.5 percent.
                                
 Diversified manufacturers also fell after Ingersoll Rand
Co Ltd <IR.N> and Pentair <PNR.N> cut their fourth-quarter
earnings estimates. [ID:nN18376522]
                                
 Pentair, which fell 4 percent to $23.91, said it would cut
over 10 percent of its workforce and close facilities to cut
costs. Ingersoll Rand was down 1.7 percent to $16.07.
                                
 On the Nasdaq, Take-Two Interactive Software <TTWO.O>
tanked roughly 25 percent to $9.09 after the video game
publisher reported a quarterly loss and issued a 2009 forecast
that fell short of expectations.
                                
 In the auto sector, General Motors Corp <GM.N> said it has
not reopened merger talks with Chrysler LLC, denying a Wall
Street Journal report that talks had been restarted.
[ID:nN18381731].
                                
The White House said that it was nearing a conclusion on
the bailout package automakers are seeking as they struggle to
cope with slumping demand and weakening consumer spending. GM
lost 18 percent to $3.59.
 (Reporting by Deepa Seetharaman; Editing by Jan Paschal)