* Google's stock falls after the bell following results
* U.S. report hits Goldman, pressures financials
* Jobless claims unexpectedly rise in latest week
* Dow up 0.12 pct, S&P up 0.01 pct, Nasdaq off 0.05 pct
* For up-to-the-minute market news see []
(Updates volume, adds Google details, Zipcar's debut)
By Rodrigo Campos
NEW YORK, April 14 (Reuters) - Stocks that outperform in a
weak economy helped the Dow and S&P 500 eke out gains on
Thursday as concerns about faltering growth and inflation
prompted investors to seek out less volatile names.
The Dow industrials' top percentage gainers were Coca-Cola
Co <KO.N>, up 1.5 percent, Kraft Foods Inc <KFT.N>, up 1.7
percent and Merck & Co <MRK.N>, up 1.2 percent.
Energy shares also rallied as U.S. crude oil futures
gained more than 1 percent to trade above $108 a barrel.
The S&P 500 fell almost 1 percent early but found support
near 1,300, a level that attracted buying interest in early
March. Failing to hold that level could trigger a test of the
benchmark's 2011 low near 1,257.
Stocks have sagged lately as economists have lowered
forecasts for U.S. growth. A Reuters poll of economists showed
2011 gross domestic product forecasts fell to 2.9 percent from
3.1 percent. For details, see [].
"GDP forecasts are continuing to fall, so (bets on
defensives) are a safety trade," said Peter Boockvar, equity
strategist at Miller Tabak & Co in New York.
Adding to the bearish sentiment, Google Inc <GOOG.O>
shares fell 5 percent to below $550 in extended trading after
the company's first-quarter profit fell short of Wall Street's
target as operating expenses surged. For details see
[].
The Dow Jones industrial average <> rose 14.16 points,
or 0.12 percent, to end at 12,285.15. The Standard & Poor's
500 <.SPX> gained 0.11 of a point, or 0.01 percent, to
1,314.52. The Nasdaq Composite <> dropped 1.30 points, or
0.05 percent, to 2,760.22.
GOLDMAN FALLS, EL PASO GAINS
A Senate investigation of Goldman Sachs <GS.N> hurt the
Wall Street giant and some of its peers, while an unexpected
rise in jobless claims added to bearish sentiment that kept
gains in check.
Goldman shares fell 2.7 percent to $155.79 and were a drag
on the S&P financial sector index <.GSPF>, which was down 0.9
percent. [].
Further weighing on financials, major housing lenders
agreed late on Wednesday to costly fixes of their foreclosure
practices as part of a settlement with U.S. bank regulators
that jumped ahead of a states' probe.
The KBW Banks Index <.BKX> dropped 1.1 percent.
Adding to the boost from the energy sector as oil prices
rose, natural gas producer and pipeline company El Paso Corp
<EP.N> said it will develop a shale oil field without a
partner. El Paso shares jumped 5.5 percent to $18.26 to lead
gains in the S&P energy sector index<.GSPE>, which rose 0.6
percent.
"Oil closed above $108 so all the energy stocks rallied
this afternoon," Boockvar said.
Weighing on the tech sector, Fairchild Semiconductor
International Inc <FCS.N> shares dropped 4.5 percent to $18.31
as it disappointed investors after it said last month's
earthquake that threw Japan's electronics supply chain into
disarray has yet to generate new business for the company.
[].
Supervalu Inc <SVU.N> forecast fiscal-year earnings above
Wall Street's expectations after its quarterly profit fell
less than feared. The supermarket operator's shares shot up
16.9 percent to $10.61.
TWO STRONG DEBUTS
Although the overall stock market's activity was tepid in
Thursday's regular session, the U.S. market for initial public
offerings showed signs of strength.
Shares of Arcos Dorados Holdings Inc <ARCO.N>, a large
South American franchisee of fast-food chain McDonald's Corp
<MCD.N>, jumped 24.7 percent to $21.20 in their stock market
debut as investors clamored for exposure to the famous brand
in a region with booming consumer spending.
McDonald's, a Dow component, rose 0.2 percent to $77.07.
The stock of Zipcar Inc <ZIP.O> soared 55.6 percent to $28
on Nasdaq in its first day of trading as investors bought into
the leader of the small, but growing, U.S. car-sharing
industry. For details on the IPOs see [].
Ford Motor Co <F.N> fell 1.1 percent to $14.81 after the
company agreed to expand a recall of the best-selling F-150
pickup trucks. U.S. safety regulators said the recall was due
to a possible short circuit that could cause airbags to deploy
unexpectedly. [].
On the economic front, a government report showed a
surprising jump in U.S. jobless claims, raising some questions
among investors about the health of the labor market recovery.
Economists said the number could be a one-time occurrence.
[]
The core U.S. Producer Price Index rose faster than
expected in March as fuel prices rose strongly, adding to
concerns about inflation.
About 6.91 billion shares traded on the New York Stock
Exchange, NYSE Amex and Nasdaq, below last year's estimated
daily average of 8.47 billion.
Advancing stocks outnumbered declining ones on the NYSE by
1,600 to 1,358, while on the Nasdaq, 1,455 stocks rose and
1,121 fell.
(Reporting by Rodrigo Campos; Editing by Jan Paschal)
