US STOCKS-Dow, S&P flat as data offsets Caterpillar results

                                

                                
 * P&G, AT&T fall after results, Caterpillar rallies
                                
 * Jobless claims rise far more than expected
                                
 * Qualcomm outlook boosts Nasdaq
                                
 * Indexes up; Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.4 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates with jobless claims)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Jan 27 (Reuters) - The Dow and S&P were little
changed on Thursday as disappointing labor market data offset
strong results from Caterpillar, but a strong outlook from
Qualcomm lifted the Nasdaq.
                                
 Initial jobless claims surged to 454,000 in the latest
week, rising to the highest level since late October, the
government said. For details, see [ID:nN27280337]
                                
 Three Dow components posted quarterly results, including
Procter & Gamble Co <PG.N>, AT&T Inc <T.N> and Caterpillar Inc
<CAT.N>. The heavy equipment posted a higher-than-expected
profit, sending the stock up 0.4 percent to $96.23.
[ID:nLDE70Q1N2]
                                
 "It is disconcerting that we can't seem to get and stay
below the 400,000 level on jobless claims," said Paul Nolte,
managing director at Dearborn Partners in Chicago. "But
Caterpillar's numbers were strong overall and are a sign of
improving conditions overseas."
                                
 AT&T and P&G shares fell as their profits slid from the
year-ago period, and AT&T's wireless subscriber growth came in
below consensus. AT&T dropped 2.6 percent to $27.96, while P&G
lost 2.5 percent to $64.45.  [ID:nN27164025] and
[ID:nN27162385]
                                
 The Dow Jones industrial average <.DJI> was up 9.65 points,
or 0.08 percent, at 11,995.09. The Standard & Poor's 500 Index
<.SPX> was up 2.01 points, or 0.16 percent, at 1,298.64. The
Nasdaq Composite Index <.IXIC> was up 9.55 points, or 0.35
percent, at 2,749.05.
                                
 Qualcomm Inc <QCOM.O> helped lift the Nasdaq, rising 4.3
percent to $54.09 a day after it raised its outlook for
second-quarter and full-year revenue. [ID:nN26182660]
                                
 Overseas, ratings agency Standard & Poor's cut Japan's
long-term debt rating by one notch to AA minus, saying the
government lacked a coherent plan to tackle its mounting debt.
[ID:nL3E7CR0MQ]
                                
 In other economic news, new orders for U.S. manufactured
goods fell unexpectedly in December, according to a Commerce
Department report.
                                
 Also, contracts for pending sales of previously owned homes
rose faster than expected in December, data from a real estate
trade group indicated. Stocks briefly ticked higher on the news
before returning to pre-data levels. [ID:nN27163484]
  (Editing by Jeffrey Benkoe)