* Oil prices jump as much as 6.5 pct on output cut pact
* Fed meets on Tuesday, Wednesday
* Defense stocks take a hit after Trump's tweet
* Viacom, CBS down after Sumner Redstone withdraws merger
* Dow up 0.15 pct, S&P down 0.03 pct, Nasdaq down 0.43 pct
(Updates to open)
By Tanya Agrawal
Dec 12 The S&P 500 and the Dow hit fresh record
highs on Monday, fueled by energy shares, while the Nasdaq was
lower, a day ahead of the U.S. Fed's two-day meeting.
Oil prices rose as much as 6.5 percent to an 18-month high
after OPEC and some of its rivals reached their first deal since
2001 to jointly reduce output to try to tackle global oversupply
and boost prices.
The S&P energy index was the top gainer with a 2.4
percent rise. Oil majors Exxon and Chevron were
up about 2.3 percent and provided the biggest boost to the Dow.
President-elect Donald Trump's expected agenda of economic
stimulus and reduced taxes and regulations has fueled a market
rally, with the benchmark S&P 500 rising 5.6 percent since Nov.
8 to Friday's close.
The Dow has closed at record highs 14 times since the
"This market has gone up without taking a breather and will
enter a cautious trading day as it awaits the Fed," said Peter
Cardillo, chief market economist at First Standard Financial in
Investors are keeping a close watch on the U.S. Federal
Reserve's last meeting for the year, beginning Tuesday, with a
statement from Fed Chair Janet Yellen on Wednesday. The central
bank is widely expected to raise benchmark interest rates, with
market participants looking for clues about the pace of future
At 9:41 a.m. ET (1441 GMT) the Dow Jones industrial average
was up 29.82 points, or 0.15 percent, at 19,786.67, the
S&P 500 was down 0.68 points, or 0.030095 percent, at
2,258.85 and the Nasdaq Composite was down 23.66 points,
or 0.43 percent, at 5,420.84.
Seven of the 11 major S&P sectors were lower, with the
industrials index's 0.64 percent fall leading the
Viacom fell 6.4 percent to $36.14 after Sumner
Redstone's privately held National Amusements withdrew its
merger proposal for CBS and Viacom, according to a
source familiar with the situation. CBS was down 3.5 percent.
Lockheed Martin was down 4.2 percent at $248.75
after Donald Trump tweeted that the company's F-35 program and
costs were "out of control". Other defense stocks, such as
General Dynamics, Raytheon, and Northrop Grumman
, were down between 3.4-6.1 percent.
Ophthotech slumped 84.3 percent to $6.06 after
Novartis said a combination of its eye drug along with
the company's did not produce better outcomes.
Declining issues outnumbered advancers on the NYSE by 1,550
to 1,133. On the Nasdaq, 1,495 issues fell and 916 advanced.
The S&P 500 index showed 46 new 52-week highs and no new
lows, while the Nasdaq recorded 87 new highs and seven new lows.
(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)