US STOCKS-Wall St flat as earnings eyed, Fed boost priced in

                                

                                
 * Apple shares hit historic intraday high
                                
 * Chesapeake Energy up after CNOOC bids for field stake
                                
 * Major indexes close flat
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to close, changes byline)
                                
 By Rodrigo Campos
                                
 NEW YORK, Oct 11 (Reuters) - U.S. stocks drifted in the
lightest trading volume of the year on Monday as few dared to
place bets ahead of key companies' results later this week.
                                
 Expectations the Federal Reserve will flood markets with
even more cash have been fully priced in to the market, so
investors are now focused on third-quarter earnings season,
with Intel Corp <INTC.O> scheduled for Tuesday.
                                
 "Trading will be light until we get more numbers, but if
companies follow Alcoa <AA.N> and come out with positive
surprises, that could add fuel to this rally," said King Lip,
chief investment officer of Baker Avenue Asset Management in
San Francisco.
                                
 Last Friday's unexpectedly weak payroll report underlined
the weakness in some areas of the economy, and increased the
expectation that the U.S. central bank will bolster the
recovery with a second round of quantitative easing, or QE2.
                                
 Some kind of Fed stimulus "is priced in, and I think now
the market's waiting for earnings reports to get some hard
evidence on how the economy is doing," said Giri Cherukuri,
head trader at OakBrook Investments in Lisle, Illinois.
                                
 Three Dow components -- Intel, JPMorgan Chase & Co <JPM.N>
and General Electric Co <GE.N> -- are scheduled to release
quarterly results this week.
                                
 The Dow Jones industrial average <.DJI> edged up 3.63
points, or 0.03 percent, to 11,010.11. The Standard & Poor's
500 Index <.SPX> inched up just 0.15 of a point, or 0.01
percent, to 1,165.30. The Nasdaq Composite Index <.IXIC> gained
0.42 of a point, or 0.02 percent, to 2,402.33.
                                
 About 5.5 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and the Nasdaq -- the
lightest volume so far in 2010.
                                
 Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 6 to 5. The reverse trend took hold on the
Nasdaq, where about seven stocks fell for every six that rose.
                                
 Apple Inc's <AAPL.O> shares hit an all-time high of $297.24
in intraday trading before closing up 0.4 percent at $295.36.
                                
 Chesapeake Energy <CHK.N> rose 1.1 percent to $23.30 after
China's top offshore oil producer, CNOOC Ltd <0883.HK><CEO.N>,
agreed to pay $1.1 billion for a stake in a U.S. shale oil and
gas field, testing the U.S. political climate for the first
time since its 2005 failed bid for Unocal. [ID:nTOE69A002].
                                
 Specialty children's apparel company Gymboree Corp <GYMB.O>
surged 22.4 percent to $64.83 after it agreed to sell itself to
Bain Capital, a private equity firm, for $1.8 billion.
                                
 The dollar index <.DXY> rose 0.23 percent despite bets on
the Fed injecting more cash into the economy as the greenback's
decline seemed overextended. However, sentiment on the U.S.
currency remained bearish. [USD/].
                                
 The 30-day correlation between the S&P 500 and the dollar
index has held below -0.8 since late August and was at -0.88,
meaning that of late, a weaker dollar has translated into
higher stock prices.
 (Reporting by Rodrigo Campos; Additional reporting by Ryan
Vlastelica; Editing by Jan Paschal)