* Indexes face technical resistance after 2-1/2 year highs
* Investors eye Egypt as protests persist
* Stocks: Dow up 0.1 pct, S&P down 0.2 pct, Nasdaq up 0.1
* For up-to-the-minute market news see []
(Updates to mid-afternoon trade)
By Edward Krudy
NEW YORK, Feb 2 (Reuters) - U.S. stocks stalled on
Wednesday, a day after the Dow and the S&P 500 closed above
important technical levels and at their highest in about 2-1/2
years.
Investors were reluctant to make big bets even though a
report showed U.S. private employers added more jobs than
expected in January. For details, see [].
Frank Lesh, a futures analyst and broker at FuturePath
Trading LLC in Chicago, said a generally positive earnings
season was keeping stocks at lofty levels.
"Maybe we'll focus on some of the problems that are out
there once the earnings are out of the way," he said. "I
wouldn't be surprise to see a bit of a pullback."
The Dow closed on Tuesday comfortably above the milestone
12,000 level for the first time since June 2008, and the S&P
closed above the 1,300 level for the first time since August
2008.
Investors kept an eye on protests in Egypt as street
clashes erupted. Concerns that protests could spread to other
countries in the region have pressured equities in recent
sessions. []
The Market Vectors Egypt Index ETF <EGPT.P>, which consists
of shares of companies in Egypt, fell 0.6 percent after rising
for two consecutive days.
The Dow Jones industrial average <> gained 7.76 points,
or 0.06 percent, to 12,047.92. The Standard & Poor's 500 Index
<.SPX> dropped 2.33 points, or 0.18 percent, to 1,305.26. The
Nasdaq Composite Index <> rose 2.03 points, or 0.07
percent, to 2,753.22.
Joseph Hargett, a strategist at Schaeffer's Investment
Research, said the Dow needs to stay above 12,000 firmly as a
show of short-term support.
"The resistance (for the Dow) now resides in the
12,100-12,200 area."
After a pullback late last week the S&P 500 is starting to
look overbought again by some measures. The index is more than
one standard deviation above its 50-day moving average and the
weekly relative strength index is above 70.
Trading volumes were not seriously affected by a harsh
winter storm that brought parts of the U.S. Midwest to a
standstill.
The story was different for futures traders in Chicago,
which took much of the brunt of the storm.
"It's definitely light downtown here. Pit trading opened
late too," said Lesh from Chicago, where he said the snow was
21 inches deep. "We're about half-staffed."
In the options market, about 6.6 million contracts
exchanged hands in morning trading, also near the average.
The PHLX semiconductor index <.SOX> could be about to break
strong resistance around the 450 area, which coincides with the
23.6 percent retracement of the slide from its historic highs
in 2000 to the low hit in November 2008.
The index, currently up 0.6 percent at 454.35, is on track
for a back-to-back close above 450, a feat not achieved since
November 2007.
Appliance maker Whirlpool Corp <WHR.N> dropped 2.2 percent
to $83.56 after its profit missed estimates. []
Time Warner Inc <TWX.N> and Mattel Inc <MAT.O> rallied
after both companies reported stronger-than-expected quarterly
profits. Media group Time Warner gained 8 percent to $34.90
while toymaker Mattel was up 2 percent to $24.63.
[] []
(Additional reporting by Rodrigo Campos; Editing by Padraic
Cassidy)
