* Pfizer gains on positive analysts' comments
* Energy rises along with oil prices
* Data shows U.S. trade gap widened in March
* Dow up 0.6 pct, S&P off 0.1 pct, Nasdaq off 0.9 pct
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(Updates to close)
By Leah Schnurr
NEW YORK, May 12 (Reuters) - The Dow rose on Tuesday as
investors scooped up defensive shares, including Pfizer
<PFE.N>, while energy companies' stocks climbed as oil hit a
six-month high.
But the S&P was little changed and the Nasdaq fell as
financial and technology shares declined after leading the
recent rally from bear market lows.
Shares of Pfizer posted the biggest percentage gain in the
Dow, rising 5.5 percent to $14.93, after positive comments
from analysts at Credit Suisse First Boston following a
meeting with the drug company's management.
Energy shares also supported the market as U.S. crude oil
futures <CLc1> briefly touched $60 a barrel before settling up
35 cents at $58.85 on hopes an economic recovery may bolster
fuel demand. Exxon Mobil Corp <XOM.N> rose 2.2 percent to
$70.82.
But worries over whether an apparent lack of incentives to
drive the market higher would put an end to the rally helped
put a cap on gains.
"We're right at the precipice and people can't decide if
the rally's still got room left or if we're priced about right
and due for a sell-off," said Warren Simpson, managing
director at Stephens Capital Management in Little Rock,
Arkansas.
"The safe-haven mantra is back in force a bit today
because obviously, we're not out of the woods yet."
The Dow Jones industrial average <> rose 50.34 points,
or 0.60 percent, to 8,469.11. The Standard & Poor's 500 Index
<.SPX> was off 0.89 points, or 0.10 percent, to 908.35. The
Nasdaq Composite Index <> was down 15.32 points, or 0.88
percent, at 1,715.92.
In addition to Pfizer's advance, its rival drugmaker and
fellow Dow component Merck <MRK.N> gained 2.4 percent to
$24.98.
Coca-Cola <KO.N> ranked among the Dow's biggest advancers,
up 3.9 percent at $44.40 as consumer staples shares also
benefited from the move into defensive stocks.
The broad S&P 500 is up 34.3 percent from the March low,
spurred by optimism that the financial sector and economy are
showing signs of stabilization. The index closed above 900
after having briefly fallen below the key support level during
the session.
In economic news, data showed the U.S. trade gap widened
in March for the first time in eight months, signaling weak
overseas demand. For details, see []
On the downside, shares of Ford <F.N> tumbled 17.6 percent
to $5.01 a day after the automaker announced an offering of
300 million shares, while the Bank of New York Mellon <BK.N>
said it sold $1.2 billion of common stock and its stock lost
3.8 percent to $28.43. [].
Investors worried that the new offerings were dilutive to
existing shareholders as companies tried to raise cash to stay
afloat, but others noted the ability to attract capital was a
positive sign.
The KBW Bank Index <.BKX> dropped 4.2 percent, but is
still more than double its March 9 closing level. Bank of
America <BAC.N> was the Dow's biggest drag, down 5.3 percent
at $12.26. The bank sold $7.3 billion of China Construction
Bank Corp <601939.SS> shares to a group of investors,
according to a source.
Big-cap technology companies weighed on the Nasdaq,
including Apple Inc <AAPL.O>, which lost 4 percent to $124.42.
The Nasdaq 100 technology index <.NDXT> fell 1.2 percent..
(Editing by Jan Paschal)
