Stocks flat as investors digest new data

By NBC News wire reports

Updated at 9:35 a.m. ET: Stocks were flat at Thursday?s open after data on the housing and labor markets did little to change investors' assessment of the economy.

Data showed the number of Americans filing new claims for jobless benefits edged higher last week although a longer trend fell close to a four-year low, indicating a slowly healing jobs market.

But housing starts unexpectedly dropped 1.1 percent last month as the industry continues to have trouble finding its footing.

"You've got this feeling that we are doing OK, maybe not as good as we would hope, but at least we are moving forward. Then if we don't continue to move forward, you've got the optimism that the Fed may be kick-starting things," said Terry Morris, senior equity manager for National Penn Investors Trust Company in Reading, Pennsylvania.

"Sleepwalking is a pretty good analogy of what is going on with the market right now."

The S&P capped its longest string of gains since December 2010 on August 10, boosted by expectations of more stimulus from central banks in the United States and euro zone to stimulate their respective economies in September.

But the index has stalled, unable to convincingly break above the 1,405 level, which has acted as a stiff resistance point.

Cisco Systems Inc rose after the world's largest network equipment maker offered little hope that dire economic conditions in Europe would come to an end any time soon but announced a 75 percent dividend hike and posted quarterly results that beat estimates.

Wal-Mart slid as the world's largest retailer posted a bigger-than-expected jump in quarterly profit but forecast full-year earnings that could fall short of Wall Street expectations.

Facebook Inc dipped. Shares are set to hit the market Thursday after a lockup period, which has prevented sales by some insiders, comes to an end.

Retailer Sears Holdings Corp reported a quarterly loss in line with Wall Street estimates as lower expenses offset weak sales.

Applied Materials forecast current-quarter revenue below expectations and its chief executive hinted the top chip-gear maker could shed poorly performing non-core businesses.

Dollar Tree fell after the discount retailer posted second-quarter earnings and forecast quarterly earnings and sales below analysts' expectations.

With earnings season winding down, Thomson Reuters data shows that of the 463 companies in the S&P 500 that have reported earnings through Wednesday morning, 67.6 percent beat analysts' expectations, about the same rate as over the past four quarters.

Indenix Pharmaceuticals Inc plunged after the company's experimental hepatitis C drug was placed on a partial hold by the U.S. Food and Drug Administration.

Reuters contributed to this report.

Source: http://marketday.nbcnews.com/_news/2012/08/16/13314782-stocks-flat-as-investors-digest-new-data?lite

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