US STOCKS-Dow up on strong momentum, but Nasdaq struggles

* U.S. economic growth slows, inflation surges

* Silver soars to all-time high

* Dow up 0.2 pct, S&P off 0.05 pct, Nasdaq down 0.3 pct * For up-to-the-minute market news see [STXNEWS/US] (Updates to afternoon)

By Angela Moon

NEW YORK, April 28 (Reuters) - The Dow edged up on Thursday as investors brushed off disappointing economic data and bet on a further rally in equities.

But the S&P was flat, dipping a toe into negative territory. And the Nasdaq struggled to move higher after hitting a 10-year high in the previous session.

"This is a practical realization. Investors are realizing that we are not going to be getting a 4 to 5 percent growth in GDP. but more of 2 to 2 1/2 percent and they are OK with it," said Dan Genter, chief investment officer of RNC Genter Capital Management in Los Angeles.

Stocks were pressured at the open after a report showed new U.S. claims for unemployment benefits surprisingly rose last week to their highest level since January.

Separate data showed U.S. economic growth slowed more than forecast in the first three months of the year as higher food and gasoline prices dampened consumer spending and sent a broad measure of inflation rising at its fastest pace in 2-1/2 years. For details, see [ID:nCAT005418]

The Dow Jones industrial average <.DJI> was up 20.32 points, or 0.16 percent, at 12,711.28. The Standard & Poor's 500 Index <.SPX> was down 0.65 of a point, or 0.05 percent, at 1,355.01. The Nasdaq Composite Index <.IXIC> was down 9.46 points, or 0.33 percent, at 2,860.42.

"We are currently sitting on the resistance level for S&P. If we stay above it today, the ceiling would be the new floor, the new support level." Genter said.

The gains came after major indexes hit multi-year highs in the previous session. The enthusiasm in the market had pushed the Nasdaq to a 10-year closing high. For the year, the Dow is now up 10 percent and the S&P 500 is up 8 percent.

Silver soared to an all-time high and gold rose to another record, as a falling dollar and signs that the Federal Reserve would maintain a loose monetary policy boosted precious metals' appeal as a hedge against inflation and economic uncertainty.

Earnings season has been strong, but there were signs of creeping costs from some companies. Procter & Gamble Co lowered the high end of its profit forecast as it trimmed expenses and increased prices to offset rising materials costs. Its shares were up 0.5 percent at $64.35 after falling for most of the morning session. [ID:nN28183619]

"These consumer products (companies) are bearing most of the brunt from the higher commodity prices, because not only are commodities in general hurting costs, but high energy, in particular gasoline, is crimping demand as their consumers are forced to economize," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.

Rising costs were also in evidence at Starbucks Corp . The company warned on Wednesday that costs will take a bigger chunk out of earnings than previously anticipated, and its full-year forecast disappointed Wall Street. Its shares slid 1 percent to $36.83.

Other economic data showed pending sales of existing U.S. homes were much stronger than expected in March, offering faint glimmers of hope for the depressed U.S. housing market. [ID:nN28270253]

Home builder Pulte Group Inc reported a smaller-than-expected quarterly loss, and its shares rose 3.9 percent to $8.29. (Reporting by Angela Moon; Editing by Jan Paschal )