US STOCKS-Data weighs on market, but tech cushions Nasdaq

                                

                                
 * U.S. weekly jobless claims rise unexpectedly
                                
 * S&P breaks through key support level
                                
 * Red Hat, Bed Bath & Beyond rise after results
                                
 * Indexes down: Dow 0.6 pct, S&P 0.7 pct, Nasdaq 0.3 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to afternoon trading, changes byline)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Sept 23 (Reuters) - U.S. stocks fell on Thursday
after a round of weak economic data from the United States and
Europe underlined the weaknesses that face the recovery, though
gains in tech stocks helped limit losses on the Nasdaq.
                                
 The S&P 500 broke below the key 1,130 level, the high end
of a long-lasting trading range. Investors had hoped that
remaining above that level would be a sign that gains would
stick. However, low trading volume has prompted some to doubt
the strength of a recent rally.
                                
 Jobless claims unexpectedly rose in the latest week,
breaking two straight weeks of declines and underlining the
headwinds that still face the labor market. For details, see
[ID:nN23130114]
                                
 "I don't see enough economic growth to spur employers to
hire people, and until that happens, we won't have consumer
confidence or spending," said Len Blum, managing partner at
Westwood Capital LLC in New York. "That points to a very slow
recovery."
                                
 Adding to concerns, European data showed the pace of growth
in the euro zone's services and manufacturing sector slowing
more than expected. U.S. data also showed existing-home sales
rose in August, but from July's severely depressed level, which
was a 13-year low. [ID:nN23142491]
                                
 "Weakness in housing and the labor market continue to
create overhead for stocks and suggests that the size of the
rally we've seen this month was probably unwarranted," Blum
said.
                                
 The Dow Jones industrial average <.DJI> was down 62.44
points, or 0.58 percent, at 10,676.87. The Standard & Poor's
500 Index <.SPX> was down 7.88 points, or 0.69 percent, at
1,126.40. The Nasdaq Composite Index <.IXIC> was down 8.05
points, or 0.34 percent, at 2,326.50.
                                
 Software maker Red Hat Inc <RHT.N> jumped 10 percent to
$40.54 after posting earnings that beat Wall Street's
estimates, while Bed Bath & Beyond <BBBY.O> rose 2.9 percent to
$43.28 a day after its earnings also topped forecasts.
[ID:nN22266298] [ID:nN22267954]
                                
 Big technology companies also helped the Nasdaq. NVIDIA
Corp <NVDA.O> gained 2.4 percent to $11.67 while U.S.-listed
shares of Baidu Inc <BIDU.O> rose 2.1 percent to $93.77.
                                
  McDonald's Corp <MCD.N> edged 0.1 percent lower to $75.03
after it raised its quarterly cash dividend by 11 percent to 61
cents. The move comes a day after fellow Dow component,
Microsoft Corp <MSFT.O>, raised its dividend but fell because
investors had been looking for a higher yield. [ID:nSGE68M0GE]
                                
 Bionovo Inc <BNVID.O> soared 64 percent to $1.99 after U.S.
health regulators accepted the chemistry, manufacturing and
controls plan for its leading drug candidate, Menerba, an
experimental treatment for hot flashes related to menopause.
[ID:nSGE68M0IA]
                                
 Bespoke Investment Group wrote that the top-performing
stocks of the quarter should continue to outperform in the
final week because of window dressing.
                                
 The theory is that "fund managers want to have these names
on their books for clients to see," the firm wrote to clients.
 (Editing by Kenneth Barry)