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Dow up 0.23%, S&P 500 down 0.02%, Nasdaq down 0.11%

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TXNM Energy ( TXNM ) gains after Blackstone deal

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Novavax ( NVAX ) jumps after coronavirus vaccine wins FDA approval

(Updates to 2:30 p.m. ET)

By Chibuike Oguh

May 19 (Reuters) - U.S. stocks were mostly lower in

choppy trading on Monday with market sentiment weakened by the

downgrade of the federal government's perfect sovereign credit

rating owing to its huge debt profile.

Moody's slashed the U.S. sovereign credit rating to "Aa1"

from "Aaa" after markets closed on Friday, citing the

government's $36 trillion outstanding debt and interest.

Benchmark S&P 500 and the Nasdaq were losing ground in

choppy trading. The Dow was trading higher.

Energy stocks were the biggest losers in

addition to consumer discretionary and technology

stocks. Six out of the 11 S&P sectors were advancing

led by healthcare, industrials, materials

and utilities stocks.

"It is to be understood that markets were going to have a

little bit of reaction because the (Moody's) announcement was

after markets closed," said Talley Leger, chief market

strategist at The Wealth Consulting Group. "But my view is that

the 'sell-America' trade is overdone."

At 2:05 p.m., the Dow Jones Industrial Average

rose 101.99 points, or 0.23%, to 42,756.73, the S&P 500

lost 1.25 points, or 0.02%, to 5,957.07 and the Nasdaq Composite

lost 21.44 points, or 0.11%, to 19,189.66.

Megacap technology stocks, including Apple ( AAPL ), Tesla

, and Alphabet were trading lower.

Benchmark 10-year Treasury yields gained on concerns that a

U.S. tax bill will increase the debt load by more than

previously expected. The yield on benchmark U.S. 10-year notes

rose 4.4 basis points to 4.481%.

President Donald Trump's sweeping tax-cut bill had won

approval from a key congressional committee on Sunday.

TXNM Energy ( TXNM ) rose 7% after the utility said it would

be acquired by the infrastructure unit of Blackstone in

an $11.5-billion deal.

Novavax ( NVAX ) shares jumped more than 15% after the

company secured a long-awaited U.S. regulatory approval for its

COVID-19 vaccine.

Declining issues outnumbered advancers by a 1.46-to-1 ratio

on the NYSE. The S&P 500 posted 26 new 52-week highs and no new

lows while the Nasdaq Composite recorded 49 new highs and 50 new

lows.