US STOCKS-Wall St flat after rally, Caterpillar advances

* Caterpillar higher after fourth-quarter results

* S&P 500 coming off eight straight sessions of gains

* Bargain hunters may look at Apple following recent drop

* Indexes: Dow up 0.1 pct, S&P 500 flat, Nasdaq up 0.2 pct

(Updates to market open)

NEW YORK, Jan 28 (Reuters) - U.S. stocks were flat on

Monday, with investors reluctant to make big bets following an

extended equity rally, though strong data and results from

Caterpillar kept a positive tone in markets.

The S&P 500 is coming off a streak of eight sessions of

gains, the longest winning streak for the index in eight years.

On Friday, it closed above 1,500 for the first time in more than

five years.

Caterpillar Inc rose 1.8 percent to $97.24 after the

Dow component reported adjusted fourth-quarter earnings that

beat expectations, though revenue was slightly below forecasts.

The heavy machinery maker also said it expects China's economy

to improve, though not at the rates of 2010 and 2011.

The results continued the trend of major firms posting

strong quarters, contributing to major averages rising for four

straight weeks.

"You can't find more of a global bellwether than Cat, and

people are pleased with the number, which suggests there could

be less concern about slowing growth in China after this," said

Wayne Kaufman, chief market analyst at John Thomas Financial in

New York.

Thomson Reuters data through Friday showed that of the 147

S&P 500 companies that have reported earnings so far, 68 percent

exceeded expectations. Since 1994, 62 percent of companies have

topped expectations, while the average over the past four

quarters stands at 65 percent.

The Dow Jones industrial average was up 18.07 points,

or 0.13 percent, at 13,914.05. The Standard & Poor's 500 Index

was down 0.07 points, or 0.00 percent, at 1,502.89. The

Nasdaq Composite Index was up 7.25 points, or 0.23

percent, at 3,156.97.

The S&P 500 on Friday closed at its highest since Dec. 10,

2007, and the Dow ended at its highest since Oct. 31, 2007. Over

the past four weeks, the S&P has jumped 7.2 percent, suggesting

markets may be vulnerable to a pullback if news disappoints.

Durable goods jumped 4.6 percent in December, a pace that

far outstripped expectations for a rise of 1.8 percent.

"We continue to have a parade of better-than-expected

economic reports. All-in-all it's a good picture. I think

there's a good chance we've reached a point of recognition where

people don't think the economy will crater," Kaufman said.

In addition to earnings, equities have also risen on an

agreement in Washington to extend the government's borrowing

power. On Monday, Fitch Ratings said that agreement removed the

near-term risk to the country's 'AAA' rating.

Previously, the agency said the lack of an agreement would

prompt a review of the sovereign rating.

In company news, Keryx Biopharmaceuticals Inc said

a late-stage trial of its experimental kidney disease drug met

the main study goal of reducing phosphate levels in blood,

sending shares up 43 percent to $4.91.

Bargain hunters may look to Apple Inc in the first

session after the tech giant lost its coveted title as the

largest U.S. company by market capitalization to Exxon Mobil

Corp. Apple rose 0.7 percent to $443.06.

On Friday, Apple's market cap fell to $413 billion, down

roughly $250 billion from its September peak. Apple's fall is

about equal to the entire value of Google Inc.

"Apple is pretty attractive right now, so you may see an

opportunity here," said Chris Bertelsen, who helps oversee $1.5

billion as chief investment officer of Global Financial Private

Capital in Sarasota, Florida. "Those who think the stock is dead

have made a big mistake."

(Editing by W Simon, Kenneth Barry and Nick Zieminski)

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