* Financials rise on Bernanke statements
* Energy shares gain as oil rebounds
* Dow off 0.1 pct, S&P up 0.2 pct, Nasdaq up 0.7 pct
* For up-to-the-minute market news, click []
(Updates to afternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, Jan 13 (Reuters) - U.S. stocks were little
changed on Tuesday as comments by Federal Reserve chief Ben
Bernanke fueled bets that the government could take toxic
assets off bank books, pushing up financial shares and
offsetting worries about the fourth-quarter earnings season.
Energy shares rose as the price of crude oil climbed 1.3
percent on supply concerns and an expected cold snap in the
Northeast, while hopes for more funds to stabilize credit
markets offset worries about Citigroup's <C.N> outlook.
Shares of biotechnology companies, among the few sectors
expected to show earnings growth, lifted the Nasdaq. Genzyme
<GENZ.O> rose after the company said its fourth-quarter profit
could top expectations.
Bernanke said in a speech in London that more steps were
needed to stabilize banks, reviving the idea of authorities
sopping up toxic assets from bank balance sheets.
"Certainly the Bernanke speech gives investors some
confidence that the Fed has additional weapons at its
disposal," said Tim Ghriskey, chief investment officer of
Solaris Asset Management in Bedford Hills, New York, "and there
are other things that it can do and that the right things are
generally being done here.
The Dow Jones industrial average <> fell 9.56 points,
or 0.11 percent, to 8,464.41. The Standard & Poor's 500 Index
<.SPX> rose 1.83 points, or 0.21 percent, to 872.09. The Nasdaq
Composite Index <> added 10.58 points, or 0.69 percent, at
1,549.37.
A day after Alcoa Inc <AA.N> kicked off what investors fear
will be a bleak fourth-quarter earnings season with an
unexpectedly large loss, investors engaged in bargain-hunting,
sending sectors like energy and technology higher.
And optimism that Washington would work quickly on a plea
by U.S. President-elect Barack Obama for the remaining $350
billion of financial rescue funds to stabilize credit markets
helped build sentiment, as did news that the U.S. trade deficit
had its biggest contraction in 12 years in November.
The S&P Financial index <.GSPF> gained 1.7 percent.
Genzyme shares gained 2.5 percent to $64.47. The AMEX
Biotechnology index gained 4.1 percent.
Chevron shares rose 1.4 percent at $71.81, while Exxon
Mobil climbed 1.7 percent to $77.81. On Nasdaq, Microsoft
<MSFT.O> climbed 2.5 percent to $19.95.
Shares of Citigroup rose 3 percent to $5.77 on the New York
Stock Exchange, a day after sliding 17 percent.
CNBC reported that Chief Executive Vikram Pandit was
expected to make an announcement about a new corporate
direction while declaring the death of the financial
supermarket model for the company.
Citigroup is pushing ahead with a plan to sell a
controlling stake in its Smith Barney retail brokerage, a crown
jewel, and analysts suggested it must be urgently seeking to
replenish capital due to mounting losses.
Obama, who is due to be sworn in on Jan. 20, is pushing for
Congress to release the remaining $350 billion of the $700
billion financial industry bailout. Obama wants the aid to go
to consumers threatened by home mortgage foreclosures and plans
to meet Tuesday with Senate Democrats to seek their support.
(Editing by Leslie Adler)
