* 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
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
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)