US STOCKS-Wall St mixed on lower jobless claims, retail sales

                                
   * June sales fall at apparel retailers, warehouse clubs
                                
 * Weekly jobless claims drop, continuing claims up
                                
 * Dow nearly flat; S&P 500 up 0.4 pct; Nasdaq up 0.5 pct
                                
 * For up-to-the-minute market news click [STXNEWS/US]
 (Updates to mid-morning)
                                
 By Rodrigo Campos
                                
 NEW YORK, July 9 (Reuters) - The Nasdaq and the S&P 500
rose slightly on Thursday as investors unloaded consumer staple
and healthcare stocks and bought technology and
commodity-related shares.
                                
 Lower initial claims for jobless benefits and weak monthly
retail sales figures did not give direction to the market,
which is now focused on earnings reports scheduled for the next
few weeks. (For details, see [ID:nN09442078])
                                
 Alcoa Inc <AA.N> rose 0.3 percent to $9.49 after posting a
third consecutive quarterly loss Wednesday, though the deficit
less than estimated. [ID:nN08471164] Materials shares in
general were stronger, however, leading the S&P 500.
                                
 Alcoa results eased investor worries about corporate
earnings, but the loss by the largest U.S. aluminum maker
underscored the pain inflicted on corporate results by the
severe recession.
                                
 Shares of healthcare companies were among the biggest
drags, with Dow component Merck & Co Inc <MRK.N> down 4.4
percent to $26.81 on speculation its Zetia cholesterol drug
fared poorly in a clinical trial comparing it to a drug from
Abbott Laboratories. <ABT.N> [ID:nN09448920]
                                
 Energy shares rose, with the S&P energy index <.GSPE> up
1.7 percent, even as crude oil futures <CLc1> declined. Oil
giant Chevron Corp <CVX.N>, up nearly 1 percent, is expected to
report interim quarterly results later Thursday.
                                
 The rise in commodity-related shares reflected traders
moving in and out of industry sectors, said Bruce Bittles,
chief investment strategist at Robert W. Baird & Co in
Nashville, Tennessee.
                                
 "They were down a lot in the past weeks, particularly
metals and energy," he said.
                                
 He expects buying to pick up. "Maybe it's going to take a
few more earnings reports to get that underway, but that's what
I think should happen," said Bittles.
                                
 The Dow Jones industrial average <.DJI> dropped 4.61
points, or 0.06 percent, to 8,173.80. The Standard & Poor's 500
Index <.SPX> rose 3.16 points, or 0.36 percent, to 882.72. The
Nasdaq Composite Index <.IXIC> gained 8.79 points, or 0.50
percent, to 1,755.96.
                                
 June sales fell at many retailers as the weak economy and
cool, rainy weather dashed interest in summer shopping, further
hampering hopes of growth in an economy so dependent on
consumer spending. [ID:nN08385359]
                                
 But shares of Target Corp <TGT.N> added 3.7 percent to
$38.63, even as June same-store sales fell. The retailer said
quarterly profit would meet or beat expectations.
                                
 The S&P 500 has rallied nearly 40 percent from its 12-year
low set in early March on expectations that the economy would
rebound from a deep recession. The rally has wilted lately as
investors seek hard evidence of that recovery.
                                
 Results from a 30-year bond Treasury auction, expected at 1
p.m. EDT (1700 GMT), will provide further insight into the
government's ability to finance spending.
 (Reporting by Rodrigo Campos and Leah Schnurr; editing by
Jeffrey Benkoe)