* U.S. weekly jobless claims rise unexpectedly
* U.S. existing home sales recover slightly in August
* Indexes: Dow, S&P flat, Nasdaq up 0.3 pct
* For up-to-the-minute market news see []
(Updates to open, adds housing data)
By Angela Moon
NEW YORK, Sept 23 (Reuters) - The Dow and the S&P 500
indexes were flat on Thursday on a mixed reading on the economy
from weaker jobs and improving home sales.
Weekly claims for jobless insurance jumped unexpectedly,
highlighting continued weakness in the labor market. Data later
showed existing home sales rose in August, bouncing from
severely depressed levels. For details see []
"The market is going to grasp whatever it can for a tidbit
of good news," said Tom Schrader, managing director of U.S.
equity trading at Stifel Nicolaus Capital Markets in
Baltimore.
The Nasdaq rose as pharmaceuticals and technology stocks
listed on the index led gains.
The Dow Jones industrial average <> was down 11.05
points, or 0.10 percent, at 10,728.26. The Standard & Poor's
500 Index <.SPX> was down 1.70 points, or 0.15 percent, at
1,132.58. The Nasdaq Composite Index <> was up 7.62
points, or 0.33 percent, at 2,342.17.
Bionovo Inc <BNVID.O> shares soared 67 percent to $2.04
after the U.S. health regulators accepted the chemistry,
manufacturing and controls plan for its lead drug candidate,
Menerba, an experimental treatment for hot flashes related to
menopause. For details, see []
Stocks have traded above major technical lines this week,
but with persistently low trading volume at levels about 20
percent less compared to last year's average, investors have
been doubtful of the sustainability of the recent rally.
"Equities have been behaving as if the economy was moving
stronger, which is not happening. I think we are in a trading
range, but short term, the markets are going to shed this
belief of a stronger recovery," said Subodh Kumar, chief
investment strategist at Subodh Kumar & Associates in Toronto.
"Equities probably will pull back a little bit here. The
S&P 500 is well above 1,100, and a few weeks ago it was close
to 1,050, and I think there's room for that kind of pullback."
Red Hat Inc <RHT.N> rose after it reported a second-quarter
profit above Wall Street forecasts as sales of its software
rose sharply. The stock climbed 11.7 percent to $41.04.
Bed Bath & Beyond Inc <BBBY.O> also reported results that
beat quarterly profit and sales estimates. It boosted its
full-year forecast, sending the stock up 4.1 percent at
$43.75.
Video rental chain Blockbuster Inc <BLOKA.PK> filed for
bankruptcy protection on Thursday after years of struggling to
compete with online and mail-order movie services. It said a
majority of senior noteholders agreed to support its
recapitalization, cutting debt to about $100 million from
nearly $1 billion. []
U.S. stocks slipped on Wednesday, ending the Dow's five-day
winning streak after the Federal Reserve spoke cautiously about
the economy and hinted at the possibility of further
quantitative easing to spur economic activity.
(Editing by Padraic Cassidy)
