US STOCKS-Wall St holds steady in light trade after last week's gains


* Bond markets shut for holiday, seen damping stock trading

* Friday's jobs data prompts more speculation about Fedtapering

* Transocean reaches deal with Icahn over dividend

* Dow up 0.1 pct; S&P 500 up 0.02 pct; Nasdaq flat

By Luke Swiderski

NEW YORK, Nov 11 (Reuters) - U.S. stocks barely budged onMonday in thin trading after investors found little reason toadd significant new positions with the Dow and the S&P 500 on afive-week winning streak.

The pause comes after October's jobs report drove the DowJones industrial average to close on Friday at another recordhigh. The Standard & Poor's 500 ended Friday's session within afew points of its all-time closing high, while both the Dow andthe S&P wrapped up a fifth straight week of gains.

Volume on Monday was expected to be quiet, with bond marketsclosed for Veterans Day.

Friday's data, which showed that the economy created 204,000jobs in October, has rekindled expectations that the U.S.Federal Reserve may reduce its stimulus efforts sooner thanexpected. A Reuters survey showed that more U.S. primary dealersnow expect the Federal Reserve to trim its $85 billion ofmonthly bond purchases before March.

"People are still trying to get a handle on the data," saidMichael O'Rourke, chief market strategist at JonesTrading, inGreenwich, Connecticut. "The question is how hard do people wantto push stocks ... that's the tug of war going on in equityprices."

Twitter Inc, which went public amid much fanfarelast week, dipped 0.05 percent to $41.63. The stock peaked at$50.09 last Thursday, its first day of trading.

The Nasdaq index, which has been underperforming thebroader market recently, was little changed. Large technologycompanies had the biggest negative impact on the Nasdaq, withApple Inc slipping 0.4 percent to $518.72. It wasreported that the tech giant was developing curved displayiPhones.

Technology stocks have trailed several other industrysectors in 2013. The 18.3 percent rise for the informationtechnology sector index this year ranks it sixth amongthe S&P 500's 10 industry groups.

"Should technology take the reins and move above here, thatwill likely be the catalyst that leads the S&P 500 to newall-time highs." said Bryan Sapp, senior trading analyst atSchaeffer's Investment Research in Cincinnati.

The Dow Jones industrial average rose 14.20 points,or 0.09 percent, to 15,775.98. The Standard & Poor's 500 Index inched up 0.39 of a point, or 0.02 percent, to 1,771.00.The Nasdaq Composite Index was flat, edging up just0.12 of a point, or unchanged on a percentage basis, to3,919.35.

Shares of ViroPharma jumped 25.5 percent to $49.41following news that London-listed Shire is buying thecompany for $4.2 billion, attracted by a pipeline of potentiallylucrative drugs to treat rare diseases.

Transocean Ltd shares gained 3.8 percent to $55.49after the company said it reached an agreement with investorCarl Icahn in which the offshore driller will pay a dividend of$3 per share and reduce the number of board seats.


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