US STOCKS-Nasdaq turns higher; Yahoo gains

(Updates to show Nasdaq turning up)

NEW YORK, May 13 (Reuters) - The Nasdaq turned higher on Tuesday, helped by gains in shares of Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz) after a CNBC report that billionaire investor Carl Icahn is considering launching a proxy fight at the Web search company.

Yahoo's shares also climbed after a stockholder Eric Jackson, who also heads investment fund Ironfire Capital, said he has canceled plans to run a proxy campaign to elect new board members.

The stock jumped 3.7 percent to $26.19.

The Dow Jones industrial average .DJI was down 45.84 points, or 0.36 percent, at 12,830.47. The Standard & Poor's 500 Index .SPX was down 0.13 points, or 0.01 percent, at 1,403.45. The Nasdaq Composite Index .IXIC was up 1.87 points, or 0.08 percent, at 2,490.36. (Reporting by Caroline Valetkevitch; Editing by Jan Paschal)