US STOCKS-Wall St flat as data offsets commods decline

                                

                                
 * Private jobs creation soars past forecasts
                                
 * Services sector grows at fastest pace in more than 4 yrs
                                
 * Dow off 0.2 pct, S&P off 0.1 pct, Nasdaq up 0.1 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to mid-morning trading)
                                
 By Rodrigo Campos
                                
 NEW YORK, Jan 5 (Reuters) - U.S. stock indexes struggled
near breakeven on Wednesday as investors were encouraged by
strong data on new private-sector jobs and the services sphere,
but weak commodity prices dragged down energy and materials
shares.
                                
 Housing and financial stocks edged higher after a report
showed a surprise surge in private-sector employment, nearly
triple forecasts. The PHLX housing index <.HGX> rose nearly 1
percent and the S&P financial sector <.GSPF> was up 0.5
percent. For details, see [ID:nN05264552]
                                
 "The jobs number looked like quite a change from the last
one," said Peter Tuz, president at Chase Investment Counsel of
Charlottesville, Virginia. "It's another sign the economy is
recovering in fits and starts."
                                
 In other data, the Institute for Supply Management reported
the services sector grew in December at its fastest pace in
more than 4 years. [ID:nEAP101500]
                                
 The Dow Jones industrial average <.DJI> fell 22.78 points,
or 0.19 percent, to 11,668.40. The Standard & Poor's 500 <.SPX>
dipped 1.60 points, or 0.13 percent, to 1,268.60. The Nasdaq
Composite <.IXIC> gained 1.57 points, or 0.06 percent, to
2,682.82.
                                
 Energy shares led declines as crude continued to slide,
with the S&P energy index <.GSPE> down 0.7 percent. Dow
component Alcoa Inc <AA.N> dropped 1.6 percent to $16.25. Oil
futures were off nearly 1 percent to $88.50 a barrel.
                                
 The U.S. dollar rose 1.1 percent against a basket of
currencies <.DXY>, sapping investor appetite for commodities
and other risky assets.
                                
 Commodities led the late-2010 rally, so some correcting is
not unexpected as investors reallocate in the new year, Tuz
said.
                                
 The ADP data comes ahead of the widely followed government
non-farm payrolls report due Friday, with economists expecting
that the economy created 140,000 jobs last month.
                                
 Shares of Family Dollar Stores Inc <FDO.N> dropped 7.5
percent to $45.63 after the discount chain reported
first-quarter earnings that missed expectations.
[ID:nN04217348]
                                
 Portugal cleared its first funding hurdle of 2011 on
Wednesday, keeping short-term borrowing costs within expected
limits, but investors still uneasy over euro zone debt troubles
that have weighed on the single currency and global equity
markets. [ID:nLDE704116]
  (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)