* 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 0.17 pct, S&P down 0.07 pct, Nasdaq down 0.57 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
Dec 12 The S&P 500 and the Dow hit record highs
on Monday, fueled by energy shares, while the Nasdaq was lower,
dragged down by technology stocks, a day ahead of the Fed's
Oil prices gained 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 performing sector
with a 1.7 percent rise. Oil major Exxon was up 2.54
percent, providing the biggest boost to the Dow and S&P. Chevron
rose 2.2 percent.
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
"The market has been rising on the incoming administration's
proposals, but how many of those actually pass through Congress
remains to be seen," said Paul Nolte, portfolio manager at
Kingsview Asset Management in Chicago.
"Investors are expecting the Fed to hike rates but are more
interested in the tone of the statement."
Market participants 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.
At 10:58 a.m. ET (1558 GMT) the Dow Jones industrial average
was up 32.96 points, or 0.17 percent, at 19,789.81, the
S&P 500 was down 1.68 points, or 0.074352 percent, at
2,257.85 and the Nasdaq Composite was down 30.87 points,
or 0.57 percent, at 5,413.63.
Six of the 11 major S&P sectors were higher.
The consumer discretionary led the decliners with
a 0.82 percent fall, weighed down by a 1.24 percent drop in
The industrials sector was down 0.58 percent,
dragged down by defense stocks.
Lockheed Martin declined 3.9 percent at $249.22
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 2.7-4.5 percent.
Viacom fell 8.5 percent to a two-month low of
$35.35 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 2.7 percent.
Ophthotech slumped 84.9 percent to a life-low of
$5.85 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 1,793
to 1,058. On the Nasdaq, 1,808 issues fell and 887 advanced.
The S&P 500 index showed 59 new 52-week highs and one new
low, while the Nasdaq recorded 165 new highs and 16 new lows.
(Reporting by Tanya Agrawal; Editing by Sriraj Kalluvila)