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Dow up 0.32%, S&P 500 up 0.09%, Nasdaq rise 0.02%

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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 4:17 PM ET)

By Chibuike Oguh

NEW YORK, May 19 (Reuters) - U.S. stocks finished near

the unchanged mark 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.

"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."

Equities had rebounded from declines earlier in the session

to finish near the unchanged mark. Still, the benchmark S&P 500

notched its sixth straight sessions of gains.

Seven out of the 11 S&P sectors advanced led by

healthcare, consumer staples, industrials

, materials and utilities stocks.

Energy stocks were the biggest losers in

addition to consumer discretionary.

The Dow Jones Industrial Average rose 137.33 points,

or 0.32%, to 42,792.07, the S&P 500 gained 5.22 points,

or 0.09%, to 5,963.60 and the Nasdaq Composite gained

4.36 points, or 0.02%, to 19,215.46.

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 1 basis point to 4.449%.

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 15% after the company

secured a long-awaited U.S. regulatory approval for its COVID-19

vaccine.

Regeneron Pharmaceuticals ( REGN ) rose 0.4% after it

announced it will buy genomics firm 23andMe Holdings for $256

million through a bankruptcy auction.

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

on the NYSE. There were 216 new highs and 50 new lows on the

NYSE.

The S&P 500 posted 26 new 52-week highs and no new lows

while the Nasdaq Composite recorded 57 new highs and 57 new

lows.

Volume on U.S. exchanges was 19.41 billion shares, compared

with the 17.34 billion average for the full session over the

last 20 trading days.