* U.S. economic growth slows, inflation surges
* Silver soars to all-time high
* Dow up 0.2 pct, S&P off 0.05 pct, Nasdaq down 0.3 pct
* For up-to-the-minute market news see []
(Updates to afternoon)
By Angela Moon
NEW YORK, April 28 (Reuters) - The Dow edged up on
Thursday as investors brushed off disappointing economic data
and bet on a further rally in equities.
But the S&P was flat, dipping a toe into negative
territory. And the Nasdaq struggled to move higher after
hitting a 10-year high in the previous session.
"This is a practical realization. Investors are realizing
that we are not going to be getting a 4 to 5 percent growth in
GDP. but more of 2 to 2 1/2 percent and they are OK with it,"
said Dan Genter, chief investment officer of RNC Genter
Capital Management in Los Angeles.
Stocks were pressured at the open after a report showed
new U.S. claims for unemployment benefits surprisingly rose
last week to their highest level since January.
Separate data showed U.S. economic growth slowed more than
forecast in the first three months of the year as higher food
and gasoline prices dampened consumer spending and sent a
broad measure of inflation rising at its fastest pace in 2-1/2
years. For details, see []
The Dow Jones industrial average <> was up 20.32
points, or 0.16 percent, at 12,711.28. The Standard & Poor's
500 Index <.SPX> was down 0.65 of a point, or 0.05 percent, at
1,355.01. The Nasdaq Composite Index <> was down 9.46
points, or 0.33 percent, at 2,860.42.
"We are currently sitting on the resistance level for S&P.
If we stay above it today, the ceiling would be the new floor,
the new support level." Genter said.
The gains came after major indexes hit multi-year highs in
the previous session. The enthusiasm in the market had pushed
the Nasdaq to a 10-year closing high. For the year, the Dow is
now up 10 percent and the S&P 500 is up 8 percent.
Silver soared to an all-time high and gold rose to another
record, as a falling dollar and signs that the Federal Reserve
would maintain a loose monetary policy boosted precious
metals' appeal as a hedge against inflation and economic
uncertainty.
Earnings season has been strong, but there were signs of
creeping costs from some companies. Procter & Gamble Co <PG.N>
lowered the high end of its profit forecast as it trimmed
expenses and increased prices to offset rising materials
costs. Its shares were up 0.5 percent at $64.35 after falling
for most of the morning session. []
"These consumer products (companies) are bearing most of
the brunt from the higher commodity prices, because not only
are commodities in general hurting costs, but high energy, in
particular gasoline, is crimping demand as their consumers are
forced to economize," said Jack Ablin, chief investment
officer of Harris Private Bank in Chicago.
Rising costs were also in evidence at Starbucks Corp
<SBUX.O>. The company warned on Wednesday that costs will take
a bigger chunk out of earnings than previously anticipated,
and its full-year forecast disappointed Wall Street. Its
shares slid 1 percent to $36.83.
Other economic data showed pending sales of existing U.S.
homes were much stronger than expected in March, offering
faint glimmers of hope for the depressed U.S. housing market.
[]
Home builder Pulte Group Inc <PHM.N> reported a
smaller-than-expected quarterly loss, and its shares rose 3.9
percent to $8.29.
(Reporting by Angela Moon; Editing by Jan Paschal )
