CORRECTED-US STOCKS-Wall St inches up on M&A deals; Iraq worries cap gains
(Corrects paragraph 6 to restore attribution in quote to Ken Polcari; fixes company name in paragraph 10 to Fusio-io Inc and not Fusio-it)
* Medtronic to buy Covidien for $42.9 bln
* U.S. considering talks with Iran over Iraq
* Crude oil rises as Iraq violence spurs supply worry
* Dow up 0.1 pct; S&P 500 up 0.1 pct; Nasdaq up 0.2 pct
By Angela Moon
NEW YORK, June 16 (Reuters) - U.S. stocks edged higher on Monday afternoon, reversing a midday dip, supported by a flurry of merger news, but the advance was limited as investors kept a close watch on rising oil prices caused by turmoil in Iraq.
Seven out of the 10 S&P sector indexes rose. The S&P energy index gained 0.5 percent. The S&P financial index , down 0.4 percent, was the biggest decliner.
The United States is considering U.S. air strikes to help the Iraqi government fend off an Islamist insurgency, as well as possible discussions with neighboring Iran, U.S. Secretary of State John Kerry said on Monday. A White House official, however, said the United States is not interested in any military coordination with Tehran. Continuación...