US STOCKS-Market slips in pause after big run-up

                                
 * Bernanke says US job growth, inflation still too low
                                
 * Disney, Coke shares rise after results
                                
 * D.Boerse and NYSE in advanced merger talks
                                
 * Indexes off: Dow 0.2 pct, S&P 0.5 pct, Nasdaq 0.4 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to late afternoon, changes byline)
                                
 By Caroline Valetkevitch
                                
 NEW YORK, Feb 9 (Reuters) - U.S. stocks edged lower on
Wednesday as investors pulled back following a five-month rally
that pushed the market to 2-1/2-year highs.
                                
 Underscoring concern about the job picture, Federal Reserve
Chairman Ben Bernanke told a congressional committee that the
labor market remains sluggish and he continues to believe that
inflation will remain subdued. Wall Street's reaction to
Bernanke's comments was muted. For details, see
[ID:nN09164124]
                                
 Still, shares of exchanges rose after news that Deutsche
Boerse <DB1Gn.DE> was in advanced merger talks to tie up with
NYSE Euronext <NYX.N>. For details, see [ID:nLDE71808S]
                                
 NYSE shares jumped 14.6 percent to $38.30. Rival exchanges
also jumped on the news, including the CBOE Holdings Inc
<CBOE.O> up 4.5 percent at $25.58, as investors eyed further
matchups.
                                
 The day's overall dip comes after the Dow logged its
seventh consecutive positive finish. It also reached another
multiyear high above the 12,200 level, while the S&P 500 is up
26 percent since the start of September. Both the Dow and S&P
500 are at 2-1/2-year highs.
                                
 "We've gone up so many days, the market is probably due for
a pause," said Henry Smith, chief investment officer at
Haverford Trust Co. in Philadelphia.
                                
 But investors should use the dips as a chance to pick up
shares, he said, since the longer-term outlook for stocks is
up.
                                
 "While we fully expect pullbacks to occur through the year,
they're going to be used as a buying opportunity because
sentiment has shifted to anxiety, and the anxiety is, 'We're
missing a bull market,'" he said.
                                
 Trading volume was at 3.75 billion shares by midday. Wall
Street's Tuesday volume was the lowest of the year at 6.99
billion shares, compared to last year's daily average at 8.47
billion.
                                
 The Dow Jones industrial average <.DJI> was down 27.93
points, or 0.23 percent, at 12,205.22. The Standard & Poor's
500 Index <.SPX> was down 7.01 points, or 0.53 percent, at
1,317.56. The Nasdaq Composite Index <.IXIC> was down 10.31
points, or 0.37 percent, at 2,786.74.
                                
 Blue chips slightly outperformed the broader market, helped
by strong earnings from Coca-Cola and Walt Disney.
[ID:nN08101124] [ID:nN0883045].
                                
 Walt Disney Co <DIS.N> after the bell on Tuesday reported
its profit surged 54 percent, topping expectations. Its shares
were up 5 percent at $43.23. Coca-Cola <KO.N> shares were up
0.4 percent at $63.14 after the company reported
higher-than-expected quarterly sales.
                                
 In the financial sector, shares of Wells Fargo & Co <WFC.N>
dropped 3.8 percent to $32.79 after the bank said its chief
financial officer will retire. The structure of the CFO's
retirement raised questions, analysts said. [ID:nN08108469].
 (Reporting by Caroline Valetkevitch, additional reporting by
Angela Moon; Editing by Leslie Adler)