Sears Holdings plunged 9 percent in early trading Wednesday after the struggling retailer said it was doubtful it would be able to keep operating.

NEW YORK Stocks are treading water in early trading as gains in high-dividend stocks are outweighed by drops in banks and other sectors.

Sears Holdings plunged 9 percent in early trading Wednesday after the struggling retailer said it was doubtful it would be able to keep operating.

Nike dropped 6 percent after issuing a weak forecast.

The market is coming off its biggest drop so far this year.

The Standard & Poor's 500 index slipped 1 point to 2,342.

The Dow Jones industrial average fell 36 points, or 0.2 percent, to 20,632. The Nasdaq composite edged up 5 points, or 0.1 percent, to 5,799.

Small-company stocks fell more than the rest of the market.

More stocks fell than rose on the New York Stock Exchange.