US STOCKS-Wall Street treads water with tariff deadline in focus

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* Chinese exports in Nov. drop for fourth straight month
* Qorvo, Skyworks rise on BAML upgrade
* 3M falls, pressures Dow Jones index
* Merck to buy ArQule for $2.7 billion
* Indexes off: Dow 0.20%, S&P 500 0.05%, Nasdaq 0.04%

(Adds comments, updates price action)
By Shreyashi Sanyal
Dec 9 (Reuters) - Wall Street's main indexes treaded water
on Monday, with investors keeping a close watch on headlines
around U.S.-China trade as planned tariffs on Chinese imports
kick in on Dec. 15.
Beijing and Washington are negotiating a first phase trade
deal aimed at de-escalating tariff disputes but they continue to
wrangle over key details.
However, markets are still hoping for a delay in the
deadline, while expecting more positive gestures from both
sides.
"There is optimism about the potential of a roll back or
some positive news on trade that is keeping stocks where they
are," said Randy Frederick, vice president of trading and
derivatives for Charles Schwab in Austin, Texas.
"But as always it ultimately depends on what we get from
President Donald Trump or China on what might be going on with
the trade deal."
The latest data from China showed exports in November shrank
for the fourth consecutive month, underscoring persistent
pressures on manufacturers from trade tensions. The S&P 500 came within striking distance of a record high
hit two weeks ago. The three indexes are now less than 1% away
from their all-time high.
The Dow Jones Industrial Average .DJI was down 54.79
points, or 0.20%, at 27,960.27, the S&P 500 .SPX was down 1.51
points, or 0.05%, at 3,144.40 and the Nasdaq Composite .IXIC
was down 3.44 points, or 0.04%, at 8,653.09.
Also in focus is the Federal Open Market Committee's two-day
policy meeting, which starts on Tuesday.
Pressuring the Dow was 3M Co MMM.N , which fell 0.5% after
Citigroup cut its rating on the industrial conglomerate's
shares.
Apple suppliers Qorvo Inc QRVO.O and Skyworks Solutions
Inc SWKS.O rose about 2.5% each, after Bank of America Merrill
Lynch upgraded shares of both companies.
Merck & Co MRK.N dipped 0.3% after the drugmaker said it
would buy cancer drug developer ArQule Inc ARQL.O for $2.7
billion in cash. Shares of ArQule doubled in value following the
news. Advancing issues outnumbered decliners by a 1.37-to-1 ratio
on the NYSE and by a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and one new low,
while the Nasdaq recorded 73 new highs and 31 new lows.