US STOCKS-Retailers lift S&P, Nasdaq, but Europe weighs

                                

                                
 * Target rallies after rosy outlook, lifting retailers
                                
 * Ireland debt woes, China inflation limit gains
                                
 * Indexes: Dow flat, S&P up 0.2 pct, Nasdaq up 0.6 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to mid-afternoon trade, adds quote)
                                
 By Angela Moon
                                
 NEW YORK, Nov 17 (Reuters) - The S&P 500 and Nasdaq indexes
were modestly higher on Wednesday, led by gains among retailers
after a bullish outlook from Target, but Europe's debt crisis
kept investors cautious.
                                
 Discount chain Target Corp <TGT.N> jumped nearly 4 percent
to $55.62 after it forecast its best same-store sales in three
years during the upcoming holiday season. The outlook sparked a
1 percent rise in the S&P retail index <.RLX>. For details, see
[ID:nN17185995]
                                
 Costco Wholesale Corp <COST.O>, another major retailer, was
one of the top percentage gainers on the Nasdaq 100 <.NDX>,
rising 2 percent to $67.04. [ID:nN17187289]
                                
 It was the market's second day of positive news from
retailers. Wal-Mart Stores Inc <WMT.N> and Home Depot Inc
<HD.N> raised their profit forecasts for the year on Tuesday.
                                
 But the overall market struggled to rebound from a drop of
nearly 2 percent on Tuesday as investors kept a close eye on
the situation in Ireland. Dublin agreed to work with a European
Union-International Monetary Fund mission on urgent steps to
shore up its shattered banking sector. [ID:nLDE6AG004]
                                
 "I think the market is in a deterioration trend. It's
worrisome at this point, considering that we had a selloff
yesterday with pretty big volume and poor advance-decline
numbers," said Frank Gretz, market analyst and technician at
the Shields & Co brokerage in New York.
                                
 "The market is certainly vulnerable, and I think it is in
fact headed for a correction."
                                
 The Dow Jones industrial average <.DJI> was down 0.03
points, or 0.00 percent, at 11,023.47. The Standard & Poor's
500 Index <.SPX> was up 2.48 points, or 0.21 percent, at
1,180.82. The Nasdaq Composite Index <.IXIC> was up 13.91
points, or 0.56 percent, at 2,483.75.
                                
 The S&P 500 is up 6.5 percent from a year ago.
                                
 Commodity prices fell after the Chinese government said it
will take forceful measures to stabilize consumer prices, which
is expected to slow demand in the fast-growing economy.
                                
 U.S. crude oil futures <CLc1> were down 2.6 percent at
$80.17 per barrel, and shares of aluminum producer Alcoa Inc
<AA.N> fell 0.8 percent to $12.93, weighing on the Dow.
[ID:nTOE6AG067]
                                
 The CBOE Volatility index <.VIX>, Wall Street's so-called
fear gauge, declined 4.7 percent but remained above 20. On
Tuesday, it closed at its highest point since Oct. 4, breaking
above its 50-day moving average and facing resistance at the
200-day moving average.
                                
 In the latest U.S. economic data, housing starts slumped to
their lowest level in more than a year in October, while
consumer prices rose, but the annual increase in core CPI was
the smallest on record. [ID:nN17190977]
                                
 General Motors Co [GM.UL] set the terms for a landmark
initial public offering that could be the largest in U.S.
history and raise up to $22.7 billion. The IPO is scheduled to
debut on Thursday. [ID:nN17165039]
  (Reporting by Angela Moon; additional reporting by Doris
Frankel; editing by Kenneth Barry and Jeffrey Benkoe)