US STOCKS-Caution pulls shares lower despite robust data

                                

                                
 * Manufacturing, job and housing data beat expectations
                                
 * Anadarko gains on buyout report
                                
 * Indexes off: Dow 0.17 pct, S&P 0.19, Nasdaq 0.15
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Dec 30 (Reuters) - U.S. stocks edged lower on
Thursday as the recent rally and light volume left investors
reluctant to take on much more risk before the new year,
despite a solid batch of economic data.
                                
 New U.S. claims for unemployment benefits dropped 34,000 to
a seasonally adjusted 388,000, the Labor Department said, the
lowest reading since early July 2008. That was well below
economists' expectations for 415,000. For details, see
[ID:nN30280758]
                                
 A report from the Institute for Supply Management-Chicago
showed activity in the U.S. Midwest jumped unexpectedly in
December, with help from a gain in employment and new orders.
And the National Association of Realtors said contracts for
pending sales of previously owned U.S. homes rose faster than
expected in November, though sales remained below "normal."
[ID:nN3095591] and [ID:nN30100234]
                                
 But analysts said investors were leery of taking large
positions until next year, despite the positive data, as light
holiday trading volume, coupled with the recent run-up, left
the market more susceptible to volatile swings.
                                
 "There's no denying that the economy is improving -- the
reason we're not seeing a bigger move is because there's such
light volume, and a lot of key players aren't around," said
Wayne Kaufman, chief market analyst at John Thomas Financial in
New York.
                                
 "A lot of people are afraid that over the next week or two
we could see a sharp pullback. That's become a common theme --
everyone thinks the pullback is coming, so no one wants to make
any big bets."
                                
 The Dow Jones industrial average <.DJI> dropped 19.49
points, or 0.17 percent, to 11,565.89. The Standard & Poor's
500 Index <.SPX> shed 2.36 points, or 0.19 percent, to
1,257.42. The Nasdaq Composite Index <.IXIC> lost 3.99 points,
or 0.15 percent, to 2,662.94.
                                
 On the penultimate trading day of the year, the S&P 500
<.SPX> is on track for its best December in nearly two decades.
The index has gained 6.5 percent so far this month, closing on
Wednesday at its highest level since Sept. 8, 2008, and has
risen in 17 of the last 20 sessions.
                                
 Anadarko Petroleum Corp <APC.N> jumped 7.2 percent to
$75.86 after the Daily Mail reported BHP Billiton Ltd <BHP.AX>
<BHP.N> is lining up an offer for the company, possibly for $90
per share.
  (Additional reporting by Ryan Vlastelica; Editing by Padraic
Cassidy)