US STOCKS-Energy leads Wall St higher, but airlines weigh

* Lennar tops estimates, lifts housing stocks

* Airline stocks fall on rising oil

* Indexes up: Dow 0.2, S&P 0.22 pct, Nasdaq 0.18 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to afternoon, changes byline)

By Rodrigo Campos

NEW YORK, Jan 11 (BestGrowthStock) – Energy shares led U.S. stocks (Read more about the stock market today. )
to modest gains on Tuesday as crude prices jumped, but
consumer-related and transportation shares limited the rise.

Stocks pared gains on stronger-than-expected profits and
outlooks after the first day of quarterly earnings reports.

U.S. crude futures settled 2 percent higher at $91.11 per
barrel after new production snags added to supply concerns even
as the Trans Alaska Pipeline remained shut, idling 12 percent
of U.S. oil production. For details see [ID:nN11145150].

Chevron (CVX.N: ), up 1.4 percent at $91.70, gave the Dow
industrials the biggest lift.

“There’s a big feeling were going to have $100 barrel oil
pretty quickly,” said Shawn Hackett, president at Hackett
Advisors in Boynton Beach, Florida.

He said that is clearly bullish for the sector, but oil
above $90 a barrel could “take disposable income away from the
economy and could hurt demand.”

Airline shares were hit by the rise in crude, with the NYSE
Arca airline index (.XAL: ) off 1.5 percent and the Dow Jones
transport average (.DJT: ) lost 1 percent after hitting its
highest in more than two years on Monday. The S&P retail index
(.RLX: ) dipped 0.3 percent.

The Dow Jones industrial average (.DJI: ) added 23.31 points,
or 0.20 percent, to 11,660.76. The Standard & Poor’s 500 (.SPX: )
rose 2.76 points, or 0.22 percent, to 1,272.51. The Nasdaq
Composite (.IXIC: ) gained 4.87 points, or 0.18 percent, to
2,712.67.

Among companies reporting fourth-quarter results higher
than expected was homebuilder Lennar Corp (LEN.N: ), which gained
7.4 percent to $20.30. [ID:nN10283415].

The PHLX Housing sector index (.HGX: ) gained 1.5 percent.

Stocks have rallied in recent weeks on optimism about
profits, but the S&P 500 ended down the past three sessions,
leading some analysts to question the rally’s durability.

“When you see a market going up in the morning and pulling
back later in the day, it’s saying there’s some distribution
going on, and at some point it may lead to a well overdue
correction,” Hackett said.

Retailers were also hit as women’s clothier Talbots Inc
(TLB.N: ) shares tumbled 18.8 percent to $6.15 after it forecast
a much bigger-than-expected quarterly loss. [ID:nSGE70A0BG].

Leading declines on the Dow, Verizon Communications Inc
(VZ.N: ) fell 1.8 percent to $35.27 after Verizon Wireless
announced it will begin selling a version of Apple Inc (Read more about Apple stock future.)’s
(AAPL.O: ) iPhone. The news was expected, and Verizon had risen
more than 11 percent in the past six weeks.

Short-term technical resistance for the benchmark is seen
round 1,280 while the area between 1,265 and 1,260 provides
support.

Sears Holding Corp (SHLD.O: ) rose 6.3 percent to $75.02
after the store chain raised its profit outlook above Wall
Street estimates, citing strong sales. [ID:nN0550793].

Alcoa Inc (AA.N: ) posted a quarterly profit that topped Wall
Street’s expectations, though revenue slightly missed the
analysts’ average estimate. The aluminum maker’s shares fell
1.2 percent to $16.29. [ID:nN10272473].

MBIA Inc (MBI.N: ) rose 13.4 percent to $13.92, a level not
seen since 2008, after a divided New York appeals court handed
the bond insurer a crucial win in the legal battle over its
restructuring plan. [ID:nN11130844].
(Reporting by Rodrigo Campos; additional reporting by Alina
Selyukh; Editing by Kenneth Barry)