* US data still shows weak hiring by employers
* World's central bankers converge on Jackson Hole
* 3PAR accepts raised bid from Dell
* Dow flat, S&P, Nasdaq down 0.1 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to midday; changes byline)
By Angela Moon
NEW YORK, Aug 26 (Reuters) - U.S. stocks erased gains, turning little changed on Thursday as a modest improvement seen in a jobs data was not enough to keep markets up.
Weekly jobless claims declined more than expected last week, briefly sending stocks higher, but the four-week average of new claims, a measure regarded as better reflecting labor market trends, rose to a nine-month high, offsetting the enthusiasm. For details, see [ID:nN26186848]
Healthcare and consumer staple shares were the biggest
losers among the S&P 500 sectors. On the blue-chip Dow, Kraft
Foods
"We want more people to be finding jobs, and the claims data is a good sign for that, but this isn't something you can stick your hat on and think everything is better. We'd like to see additional hiring in the private sector," said Anthony Halpin, investment adviser at Chicago Partners Investment Group LLC in Chicago.
The Dow Jones industrial average <.DJI> was down 6.36 points, or 0.06 percent, at 10,053.70. The Standard & Poor's 500 Index <.SPX> was up 0.27 point, or 0.03 percent, at 1,055.60. The Nasdaq Composite Index <.IXIC> was down 2.61 points, or 0.12 percent, at 2,138.93.
Major indexes are off about 6.5 percent from their Aug. 9 high because investors have grown concerned about the sharp slowdown in the economy or some fear a double-dip recession as data showed growth deteriorating in various sectors.
Reflecting those concerns about the economy, the percentage of individual investors who expect stocks to rise in coming months fell to the lowest level since March 2009.
The American Association of Individual Investors' measurement of stock market sentiment showed the day's Bull reading was at 20.7, down from 30.1 last week and at the lowest level since March 2009 when it was 18.9. Bears, however, rose 7 points on the week to 49.5. In March of 2009, Bears hit 70.3.
In merger news, data storage company 3PAR Inc
Shares of Dell rose 0.6 percent to $11.86 and HP, a Dow component, was up 0.3 percent at $38.35. [ID:nN26185803] 3PAR shares dipped 2.5 percent to $26.07.
Investors will be watching developments at Jackson Hole, Wyoming, where central bankers from around the world have converged to assess the darkening economic outlook.
Federal Reserve Chairman Ben Bernanke in a speech on Friday is likely to discuss the uncertain prospects for the economy but isn't expected to give many clues about whether the U.S. central bank will pump more cash into the economy to keep the recovery going. [ID:nN25199098]. (Reporting by Angela Moon, Editing by Kenneth Barry)