US-STOCKS-Wall St flat as investors show caution

* S&P up 11.6 percent in 2010 but could be overbought

* ATT, Raytheon continue “Merger Monday” flurry

* Boeing drags on Dreamliner worry

* Dow off 0.3 pct, S&P up 0.03 pct, Nasdaq off 0.02 pct

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

By Chuck Mikolajczak

NEW YORK, Dec 20 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) drifted on Monday
as investors were reluctant to push stocks higher after briefly
touching another high for the year.

The dollar rose against other major currencies while the
euro fell (Read more about the trembling euro. ), hitting a record low against the Swiss franc and a
two-week low versus the greenback as investors fretted over
euro zone debt problems. For details, see [ID:nLDE6BJ1LR]

Investors were reluctant to push stocks higher after a run
of solid economic data, which has pushed the Standard & Poor’s
500 benchmark index up 5.4 percent for the month and 11.6
percent for the year.

“We are a little elevated here. We’ve got a little bit of a
nosebleed going,” said Stephen Massocca, managing director at
Wedbush Morgan in San Francisco.

Among several deal announcements, AT&T Inc (T.N: ) said it
would buy wireless spectrum licenses from Qualcomm Inc (QCOM.O: )
in a deal worth $1.9 billion. Qualcomm rose 0.3 percent to
$49.59. AT&T dipped 0.5 percent $29.05.

The Dow Jones industrial average (.DJI: ) dropped 29.90
points, or 0.26 percent, to 11,462.01. The Standard & Poor’s
500 Index (.SPX: ) gained 0.34 points, or 0.03 percent, to
1,244.25. The Nasdaq Composite Index (.IXIC: ) dropped 0.62
points, or 0.02 percent, to 2,642.35.

U.S. markets will be closed on Friday to observe the
Christmas Day holiday on Saturday.

Dow component Boeing Co (BA.N: ), down 2.7 percent to $63.27,
kept indexes in check. Traders cited reports the plane maker’s
troubled Dreamliner may be delayed once again, which could put
its contracts in jeopardy with airlines.

“It sounds like some of the airlines are getting sick of
the delays in this Dreamliner and that is why it is down.”
added Massocca.

Raytheon Co (RTN.N: ) shed 0.4 percent to $44.99 after the
defense contractor said it will acquire Applied Signal
Technology Inc (APSG.O: ) for $490 million. Applied Signal shares
rose 7.9 percent to $37.80. [ID:nN20186154]

Underscoring expectations of strong holiday spending, U.S.
online sales are up 12 percent to $27.5 billion so far this
season compared with a year ago. For details, see

Shares of Adobe Systems Inc (ADBE.O: ), which reports
quarterly results later in the day, were up 1.9 percent to

Food and beverage company Sara Lee Corp (SLE.N: ) has been in
talks to sell itself to Brazilian meat producer JBS (JBSS3.SA: ),
but the two companies are at odds over price, a source said.
Sara Lee shares rose 1.4 percent to $17.50. [ID:nN19146410]
(Editing by Kenneth Barry)

US-STOCKS-Wall St flat as investors show caution