US STOCKS-Blue chips slip as oil rises, jobs data eyed

(Updates to early morning)

By Ellis Mnyandu

NEW YORK, April 5 (Reuters) - U.S. blue-chip stocks slipped on Thursday, led by declines in shares of bellwethers such as 3M Co. (MMM.N) as rising crude oil prices rekindled concerns about inflation and the outlook for profits.

Caution before Friday's jobs report for March also kept a lid on the broad market. The report will be scrutinized for hints about the economy's health.

Shares of 3M dropped 0.4 percent, while shares of United Technologies Corp. (UTX.N) slipped 0.3 percent. Financial shares also headed lower, with Bank of America Corp. (BAC.N) down 0.5 percent.

U.S. crude for May delivery CLc1 rose amid reports of refinery problems. It increased 0.4 percent to $64.66 a barrel on the New York Mercantile Exchange. Even though Iran freed British troops, easing political tensions, crude oil prices remain stubbornly entrenched above $60 barrel, which threatens to hurt consumer spending, analysts said.

"Oil is what's weighing on the market, as one of its concerns is that inflation remains slightly above the Federal Reserve's comfort zone," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.

The Dow Jones industrial average .DJI was down 23.65 points, or 0.19 percent, at 12,506.40. The Standard & Poor's 500 Index .SPX was down 1.30 points, or 0.09 percent, at 1,438.07. The Nasdaq Composite Index .IXIC was up 1.69 points, or 0.07 percent, at 2,460.38.

The jobs data on Friday comes two days after a gauge of the U.S. services sector showed anemic growth even as price pressures rose.

The stock market will be closed on Friday for Good Friday, but the U.S. government will release non-farm payrolls data.

The U.S. stock market reaction to the payroll numbers will be delayed until Monday, said Phil Orlando, chief portfolio manager at Federated Investors, in New York.

"Our read is that the economy is continuing to decelerate. So if you're asking me what side would the likely surprise come on, I think the surprise will be weaker rather than stronger."

3M shares fell to $76.55 on the New York Stock Exchange, while shares of UTX dropped to $64.75.