US STOCKS-Indexes up slightly; jobs help but earnings loom

(Updates to early morning)

By Jennifer Coogan

NEW YORK, April 9 (Reuters) - U.S. stocks rose slightly on Monday after news of stronger-than-expected job growth last month, but sentiment was tempered by worry about earnings as the first-quarter reporting season begins later this week.

U.S. stock markets reacted for the first time to Friday's news from the Labor Department that U.S. employers added 180,000 new jobs in March, implying the economy remains durable despite a slowdown in housing. The markets were closed on Good Friday.

"With that employment number, people may have thought there would be a little more follow-through this week," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank Private Wealth Management. "But there's a little bit of a concern that earnings results aren't going to be up to par, and the job number definitely pushes off the Fed coming in and lowering interest rates."

Chip maker Advanced Micro Devices (AMD.N) rose after it announced a restructuring to cut costs. But American Home Mortgage Investment Corp. AHM.N fell after it warned it expects lower income than previously forecast.

The Dow Jones industrial average .DJI was up 9.83 points, or 0.08 percent, at 12,570.03. The Standard & Poor's 500 Index .SPX was up 1.13 points, or 0.08 percent, at 1,444.89. The Nasdaq Composite Index .IXIC was down 0.36 point, or 0.01 percent, at 2,470.98.

In what may be the biggest leveraged buyout ever, a consortium of Middle Eastern investors and American buyout firms, including Kohlberg Kravis Roberts, is preparing a $50 billion approach for Dow Chemical Co. (DOW.N) chemical company, according to a British tabloid. For details, see [ID:nN08185028].

Shares of Dow Chemical jumped 5.9 percent to $47.10 on the New York Stock Exchange.

In other investment news, shares of Burlington Northern Santa Fe Corp. (BNI.N) rose after Warren Buffett's Berkshire Hathaway Inc. (BRKa.N) (BRKb.N) said it acquired a 10.9 percent stake in the railroad company to become its largest shareholder [ID:nN08272729].

An index of railroad stocks .GSPRAIL rose 6 percent after CNBC reported that Berkshire has also bought stakes in two other railroads which it did not name.

Burlington Northern shares were up 3.4 percent to $85.51. Shares of CSX Corp. (CSX.N) were up 4 percent to $42.60 on the NYSE. Norfolk Southern shares were up 4.3 percent to $53.27

American Home Mortgage shares plunged 16.2 percent to $21.65 on the NYSE. Shares of AMD, which also announced a revenue forecast below Wall Street estimates rose 3.6 percent to $13.32.

The first-quarter earnings reporting season is set to begin in earnest on Tuesday with aluminum producer Alcoa (AA.N) posting its results. Conglomerate General Electric Co. (GE.N) reports on Friday.