US STOCKS-S&P flat after data; Microsoft weighs on Nasdaq

                                

                                
 * Pending home sales rise, factory orders edge lower
                                
 * Microsoft lower after Goldman downgrade
                                
 * Switzerland sets new rules for Credit Suisse, UBS
                                
 * Indexes: Dow flat, S&P off 0.16 pct, Nasdaq off 0.4 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates prices, adds pending home sales, factory orders
data)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Oct 4 (Reuters) - The Dow and S&P 500 were little
changed on Monday as concerns about bank profits, spurred by
new Swiss capital rules, were offset by upbeat housing data,
while Microsoft fell after a ratings downgrade, weighing on the
Nasdaq.
                                
 Pending home sales rose more than expected in August,
indicating the housing market was regaining some stability, and
August factory orders fell slightly more than forecast. For
details, see [ID:nN04102686] and [ID:nN04108989]
                                
 Swiss regulators will require global banks UBS AG
<UBS.N><UBSN.VX> and Credit Suisse <CS.N><CSGN.VX> to hold far
more capital than their international rivals to prevent a
crisis that could cripple the country. The new rules could
crimp competitiveness in investment banking. [ID:nLDE6920GP]
                                
 Concerns about Europe's banking system have been a headwind
for U.S. stocks in recent months, even as some improving
domestic data eased concerns over a possible double-dip
recession. The S&P 500 recently finished its best quarter in a
year, though the index has struggled to break out of the
1,130-1,150 range.
                                
 "These austerity measures are necessary, but don't have a
stimulating effect on the market," said Malcolm Polley,
president and chief investment officer of Stewart Capital
Advisors in Indiana, Pennsylvania. "It could mean that equity
returns will be muted, though not necessarily down, for quite a
while."
                                
 The Dow Jones industrial average <.DJI> was up 2.80 points,
or 0.03 percent, at 10,832.48. The Standard & Poor's 500 Index
<.SPX> was down 1.78 points, or 0.16 percent, at 1,144.46. The
Nasdaq Composite Index <.IXIC> was down 8.74 points, or 0.37
percent, at 2,362.01.
                                
 Microsoft Corp <MSFT.O> was the top percentage loser on the
Dow, falling 2.1 percent to $23.87 after Goldman Sachs
downgraded the stock to "neutral," citing competition from
tablet computers. [ID:nSGE6930CY]
                                
 Actel Corp <ACTL.O> surged 31 percent to $20.92 after
chipmaker Microsemi Corp <MSCC.O> said it would buy its smaller
rival. [ID:nSGE69306B]
                                
 GTSI Corp <GTSI.O> tumbled 41 percent to $4.30 after Eyak
Technology withdrew a buyout offer. [ID:nWNAB1405]
                                
 This week marks the unofficial start of the third-quarter
earnings season, with Alcoa Inc <AA.N> due to report on
Thursday. Micron Technology Inc <MU.O>, PepsiCo Inc <PEP.N> and
Monsanto Co <MON.N> are all set to report this week.
  (Editing by Jeffrey Benkoe)