Trader's Highlight

DJI-NEW YORK, Dec 7 (Reuters) - U.S. stocks eked out a small gain on Tuesday as investors' enthusiasm over a tax cut extension deal was short-circuited by rising bond yields and reports regulators were stepping up an insider-trading probe.

The S&P 500 hit a two-year intraday high after U.S. President Barack Obama forged the deal with Republicans to renew Bush-era tax cuts.

The Dow Jones industrial average <.DJI> dropped 3.03 points, or 0.03 percent, to 11,359.16. The Standard & Poor's 500 Index <.SPX> added 0.63 points, or 0.05 percent, to 1,223.75. The Nasdaq Composite Index <.IXIC> gained 3.57 points, or 0.14 percent, to 2,598.49.

NYMEX-NEW YORK, Dec 7 (Reuters) - U.S. crude oil futures ended lower on Tuesday for the first time in five session as the dollar rose, curbing risk trades, and doubts emerged on whether the reported tax-cut extension deal between Democrats and Republicans would push through.

Investors also booked profits as prices had risen a combined $5.27, or 6.3 percent, in the previous four sessions.

On the New York Mercantile Exchange, January crude settled down 69 cents, or 0.77 percent, at $88.69 a barrel, trading from $88.22 to $90.76, the highest since Oct. 8, 2008, when the intraday peak was $90.99.

CBOT-CHICAGO, Dec 7 (Reuters) - Chicago Board of Trade grain and soy complex futures close on Tuesday.

CBOT-SOYBEANS - January down 3 cents at $12.85-1/28 per bushel. Declines in wheat, crude oil and gold offset support from strong Chinese soy demand and worries about dry weather in Argentina.

CBOT-SOYOIL - December up 0.26 cent at 53.39 cents per lb; January up 0.26 at 53.80 cents. Gaining against soymeal on oil/meal spreads.

FCPO-KUALA LUMPUR, Dec 6 (Reuters) - Malaysian crude palm oil hit a 29-month high on Monday as a weaker dollar spurred risk-taking and on spillover support from wheat prices, which are being bolstered by concerns over Australia's grains output.

The dollar was on the defensive on Monday after the U.S. Federal Reserve said it was open to injecting more funds into the economy.

Palm oil has climbed by more than a third this year, with the biggest weekly gain so far this year last week on bullish forecasts from key industry analysts at an Indonesian conference and erratic weather hitting grains and oilseed regions.

The Malaysian crude palm oil contract jumped 2.8 percent to 3,618 ringgit ($1,150) a tonne, a level unseen since July 4, 2008, before settling at 3,610 ringgit.

Traded volume more than doubled from normal to 27,666 lots at 25 tonnes each on short covering ahead of a Malaysian public holiday on Tuesday.

REGIONAL EQUITIES-COLOMBO, Dec 7 (Reuters) - Thai stocks rose to a four-week high on Tuesday in thin trade, led by energy shares after a jump in oil prices, and some other Southeast Asian markets saw cautious buying due to guarded optimism about the global economy.

Thailand <.SETI>, the region's second-best performer this year, rose 0.6 percent after a long holiday weekend to its highest since Nov. 10, while late buying helped Singapore <.FTSTI> gain 0.3 percent, both in thin volume compared to their 90-day average.

The Philippines <.PSI> dropped 0.6 percent from a one-month high in light trade, with foreign outflows of $7.9 million, while Vietnam <.VNI> fell 1 percent from a two-month high. Both Indonesia <.JKSE> and Malaysia <.KLSE> were closed for holidays.