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US STOCKS-Wall St's two-day rally fades on tech, oil weakness

(For a live blog on the U.S. stock market, click LIVE/ ortype LIVE/ in an Eikon news window.)

* Indexes up: Dow 0.09 pct, S&P 0.09 pct, Nasdaq 0.08 pct

* Gains in health, financials offset tech, energy drag

* U.S. stocks on pace to snap three straight weeks of losses (Changes comment, adds details, updates prices)

By Medha Singh

Dec 28 (Reuters) - U.S. stocks were struggling on Friday toextend their rally to a third straight day, weighed down by adrop in the energy and technology sectors at the end of a weekthat has seen the market swing wildly.

The week started off with Wall Street's worst-ever ChristmasEve drop, followed by Dow Jones Industrial Average's .DJI record 1,000-plus point surge on Wednesday and a stunningreversal late on Thursday that ensured two days of gains.

The trend continued on Friday as the three main indexesflitted between gains and losses. The swings, though, were to alesser degree, with the S&P 500 rising as much as 0.78 percentbefore dropping 0.64 percent to a session low.

Technology stocks .SPLRCT , which had powered the rallyearlier this year and were at the center of the recent pullback,were flat, while energy stocks .SPNY slipped 0.33 percent.

Holding the market were the financial .SPSY and health .SPXHC sectors, up about 0.4 percent each.

"We're seeing some big moves today and I expect the wildride to continue, like the ones we've seen in the last couple oftrading days," said Ryan Nauman, market strategist at InformaFinancial Intelligence in Zephyr Cove, Nevada.

"Since the beginning of October, investors are moredefensive. Rather than buying the dip, they are selling therally. They are looking to take gains when they can," Naumanadded.

One dampener was a report that showed contracts to buypreviously owned homes fell unexpectedly in November, the latestsign of weakness in the U.S. housing market.

At 11:36 a.m. ET, the Dow Jones Industrial Average .DJI was up 20.07 points, or 0.09 percent, at 23,158.89, while theS&P 500 .SPX was up 2.33 points, or 0.09 percent, at 2,491.16.The Nasdaq Composite .IXIC was up 5.59 points, or 0.08percent, at 6,585.08.

While the three indexes are on pace to snap a streak ofthree straight weeks of losses, they are still down about 9percent for December and on track for their biggest annualpercentage drop since 2008.

Investors head into 2019 with a list of worries ranging fromU.S.-China trade tensions, rising interest rates and a coolingeconomy to a partial U.S. government shutdown, which started onSaturday.

Among stocks, Tesla IncTSLA.O rose 2.9 percent after theelectric automaker named Oracle CorpORCL.N co-founder LarryEllison and Walgreens Boots Alliance'sWBA.O executiveKathleen Wilson-Thompson as two independent board directors.

Advancing issues outnumbered decliners by a 1.59-to-1 ratioon the NYSE and a 1.66-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week highs and no new lows,while the Nasdaq recorded four new highs and 52 new lows. (Reporting by Medha Singh in Bengaluru; Editing by AnilD'Silva) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,outside U.S. +91 80 6749 1130; Reuters Messaging:medha.singh.thomsonreuters.com@reuters.net))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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