* Stocks come off lows as investors brush off Europe woes
* Monthly home prices fall more than expected-Case-Shiller
* Volatility Index gains on short-term uncertainty
* Dow down 0.1 pct, S&P off 0.2 pct, Nasdaq off 0.7 pct (Updates to afternoon trade)
By Angela Moon
NEW YORK, Nov 30 (Reuters) - Wall Street was pressured by the euro zone's debt crisis, but stocks came off their intraday lows in the afternoon on Tuesday, suggesting investors still see value in equities.
The S&P 500 Index erased most of its losses by afternoon trade after falling more than 1 percent earlier as the euro sank to a 10-week low against the U.S. dollar. A weekend rescue package for Ireland did little to stem fiscal concerns.
The euro and stocks have been trading in sync with each other in recent weeks as European debt problems resurfaced, driving investors away from risky assets.
The Dow Jones industrial average was down 9.35 points, or 0.08 percent, at 11,043.14, after briefly turning positive. The Standard & Poor's 500 Index was down 2.46 points, or 0.21 percent, at 1,185.30. The Nasdaq Composite Index was down 18.02 points, or 0.71 percent, at 2,507.20.
"Everyone has seen these crises pop up, but then the market gets back on track. That's what I think is going to happen again. I don't see this as the start of a longer correction," said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego, California.
"The opportunities are still greater in the domestic market than in European markets."
Global investors increased their exposure to equities in November despite weaknesses on many bourses, while U.S. and British fund managers stepped away from crisis-hit euro-zone bonds, a Reuters asset allocation poll found.
However, reflecting investors' fear over short-term uncertainty, the CBOE Volatility Index, or VIX <.VIX>, rose 4.9 percent to 22.59.
The latest S&P/Case-Shiller home prices data in the U.S. which came out shortly after the market open, also disappointed investors as monthly prices fell more than expected in September and prices from a year earlier rose more slowly than forecast.
The Dow Jones U.S. home construction index edged up 0.2 percent after closing Monday at its lowest since July 2009.
Google Inc weighed on the tech-heavy Nasdaq index following media reports that the company is close to a deal to buy local advertising website Groupon Inc in what could be the Internet giant's biggest acquisition to date.
Google shares fell 3.5 percent to $561.60.
On the upside, Swiss engineering group ABB is to buy U.S. industrial motors manufacturer Baldor Electric Co for $3.1 billion to capitalize on a global push for energy efficiency and boost its North American presence. Baldor's stock soared 40.2 percent to $63.26 and topped the list of percentage gainers on the New York Stock Exchange.
In November, U.S. consumer confidence rose to its highest level in five months, helped by improving labor market conditions, according to a report from the Conference Board, a private-sector research group. (Additional reporting by Ryan Vlastelica; Editing by Jan Paschal)