DJI- NEW YORK, July 30 (Reuters) - U.S. stocks finished mostly flat on Monday as investors paused following the best two-day run this year, with central bank meetings and a full load of U.S. economic data looming.
Traders have bet that the Federal Reserve and the European Central Bank will suggest further action to stimulate their economies is on the way when each meets later this week.
The sectors least sensitive to economic growth - telecoms, consumer staples and utilities - posted healthy gains, suggesting a cautious move to defensive plays.
Blue chips like Wal-Mart Stores WMT.N and AT&T T.N hit new 52-week highs. Wal-Mart rose 0.6 percent to end at $74.98 after hitting $75.24 earlier. AT&T added 0.8 percent to close at $37.43 after hitting $37.69.
Last week, a strong statement from ECB President Mario Draghi drove the Dow above 13,000 for the first time since early May, and gave the S&P 500 its biggest two-day rally since December.
"With all that news later in the week and after the big run, I think there's probably a little bit of hesitation to run ahead of these numbers," said Janna Sampson, co-chief investment officer at OakBrook Investments in Lisle, Illinois.
The Fed begins a two-day meeting on Tuesday while the ECB will meet on Thursday. The U.S. economic calendar is heavy this week, including Friday's payrolls report for July.
The Nasdaq Composite underperformed the other major indexes, weighed down by a 5.9 percent drop in shares of Citrix Systems CTXS.O and a 1 percent fall in Intel INTC.O.
The Dow Jones industrial average .DJI dipped 2.65 points, or 0.02 percent, to 13,073.01 at the close. The Standard & Poor's 500 Index .SPX edged down just 0.67 of a point, or 0.05 percent, to 1,385.30. The Nasdaq Composite Index .IXIC fell 12.25 points, or 0.41 percent, to end at 2,945.84.
About 5.5 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the Amex - 18.5 percent below the year-to-date daily average of 6.75 billion shares through last Friday.
On the NYSE, decliners slightly outnumbered advancers by 1,520 to 1,460. On the Nasdaq, 1,586 issues fell while 883 shares rose.
NYMEX- NEW YORK, July 30 (Reuters) - U.S. crude oil futures fell for the first time in five sessions on Monday on concerns that stimulus expected from the United States and Europe may fail to lift their slowing economies, overshadowing signs of lower OPEC output.
CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade rose nearly 3 percent and set a one-week high on concerns that dry U.S. crop weather over the next two weeks would further stress the crop, traders said.
* Soymeal and soyoil also ended higher, with soymeal gaining against soyoil on meal/oil spreads.
• Midday weather updates indicated even drier weather than earlier forecasts in the U.S. Midwest for the next week or two, which will increase stress on corn and soybean crops that already have been slashed due to the worst drought in over 50 years. (nL2E8IU551)
• Analysts surveyed by Reuters expected USDA in its weekly crop report on Monday to show U.S. soybean condition ratings down 2 percentage points, at 29 percent good to excellent. (nL2E8IU493)
• Trade expecting no first-day deliveries against CBOT August soybean and soymeal futures on Tuesday, but soyoil deliveries were seen at 1,000 to 2,000 contracts. (nL2E8IU8ZA)
• Brazilian soybean producers are selling the 2012/13 crop earlier than ever before, with 41 percent of next season's output already sold, two months before planting starts - analyst Celeres. (nL2E8IU6MO)
• USDA reported export inspections of U.S. soybeans in the latest week at 15.498 million bushels, within a range of trade estimates for 12 million to 17 million.
• Average palm oil prices in Malaysia may hold their ground at 3,200-ringgit this year, a Reuters poll showed, supported by a squeeze in supplies of edible oil from the drought-hit U.S. Midwest and the brewing El Nino weather pattern. (nT9E8GG03S)
FCPO- SINGAPORE, July 30 (Reuters) - Malaysian crude palm oil edged to a one-week high on Monday, tracking gains in broader financial markets on expectations the Federal Reserve and European Central Bank (ECB) will announce new measures to encourage growth, boosting commodity demand.
Persistent drought in the U.S. Midwest that threatened soy crop yields also supported prices, with traders expecting a crop downgrade in the weekly progress report by the U.S. Department of Agriculture (USDA), due later on Monday. GRA/
Tighter soy crop supply leading to less soybean oil could shift vegetable oil demand to the cheaper palm oil.
"Euro zone worries have eased a little and rain that was anticipated in the U.S. did not match expectations," said a Singapore-based trader with a foreign commodities house. "But we will have to wait and see tonight's USDA crop progress report for price direction."
The benchmark October palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange closed 2.7 percent higher at 3,005 ringgit ($954) per tonne. Prices earlier touched 3,007 ringgit, the highest level since July 23.
Traded volume stood at 24,699 lots of 25 tonnes each, a tad lower than the usual 25,000 lots.
Technicals turned bullish as palm oil broke a resistance at 2,987 ringgit and could trigger a gain to 3,021 ringgit, Reuters market analyst Wang Tao said. (nL4E8IU0VZ)
Investors are hoping Fed and ECB policy meetings this week will produce stimulus measures, especially after ECB President Mario Draghi pledged he would do whatever it takes to safeguard the euro. MKTS/GLOB
On the local front, market players will be looking out for Malaysia's July palm oil export data after earlier numbers showed signs of slowing demand.
Malaysia will increase shipping quotas for tax free crude palm oil by up to 2 million tonnes this year to help planters cope with higher output in the next few months, government sources said, as the world's No.2 supplier struggles to maintain its export momentum.
REGIONAL EQUITY-BANGKOK, July 30 (Reuters) - Southeast Asian stock indexes closed higher on Monday, with Singapore, Indonesia and the Philippines rising to their highest close in more than one week as investors hunted for bargains in large caps and financial shares in a reporting season.
Singapore's Straits Times Index .FTSTI rose 1.14 percent, with casino operator Genting Singapore Pcl GENS.SI surging 7.4 percent, rebounding after a combined loss of 13.8 percent so far in the month to Friday. (nL4E8IU1J6)
Jakarta's Composite Index .JKSE edged up 0.37 percent, building on a 2.3 percent gain in the past three sessions while the Philippine index .PSI gained 1.1 percent after Friday's 1.3 percent rise.
Among the bright spots in the region, Bank Mandiri BMRI.JK, Indonesia's biggest lender, jumped 2.6 percent before it reported after market close that its second-quarter net profit rose 48 percent from a year ago.
