US STOCKS-Wall Street flat, awaits fresh fiscal aid package

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* Weekly jobless claims fall more than expected
* Western Digital sinks after soft outlook
* Norwegian Cruise Line, Hilton post wider loss
* Indexes: Dow up 0.18%, S&P and Nasdaq flat

(Updates to open)
By Medha Singh and Ambar Warrick
Aug 6 (Reuters) - Major U.S. stock averages treaded water on
Thursday as investors awaited a new fiscal aid package to prop
up the country's economy, with data showing 31.3 million
Americans were receiving unemployment checks in mid-July.
Still, the tech-heavy Nasdaq clinched a new record high in
early trading. The benchmark S&P 500 and blue-chip Dow were
about 2% and 8% away from their own peaks scaled in February.
Economic data released on Thursday painted a mixed picture
as Labor Department numbers showed a first fall in jobless
claims in three weeks, while a separate report showed a 54%
surge in job cuts announced by employers in July. The focus now shifts to the monthly jobs report on Friday.
"With the trajectory of the recovery still unclear, today's
numbers highlight the uncertainty in the labor market," said
Mike Loewengart, managing director of investment strategy at
E*TRADE Financial Corp in Jersey City.
"And with stimulus talks in Washington still volleying for
an answer to the unemployment problem, the future is clouded."
Top congressional Democrats and White House officials will
try again on Thursday to find a compromise on major issues
including the size of a federal benefit for the unemployed as
they work towards a relief legislation.
But Wall Street's main indexes are set for a second straight
weekly gain, powered by heaps of fiscal and monetary stimulus
and better-than-feared second-quarter earnings.
At 10:05 a.m. ET, the Dow Jones Industrial Average .DJI
was up 49.93 points, or 0.18%, at 27,251.45, the S&P 500 .SPX
was up 0.47 points, or 0.01%, at 3,328.24. The Nasdaq Composite
.IXIC was down 5.28 points, or 0.05%, at 10,993.12.
Communication services .SPLRCL led gains among major S&P
sectors.
Among individual shares, Western Digital WDC.O sank 16.7%
after the hard drive maker reported weaker-than-expected
fourth-quarter revenue and forecast a soft current quarter.
Norwegian Cruise Line Holdings Ltd NCLH.N and hotel
operator Hilton Worldwide Holdings Inc HLT.N reversed course
after dropping in early trade. Both the companies reported a
wider-than-expected quarterly loss as their businesses were
ravaged by the pandemic. Bristol-Myers Squibb Co BMY.N gained 3.2% after the
drugmaker raised its annual profit forecast on hopes of a
recovery in demand for its hospital-administered drugs.
ViacomCBS Inc VIACA.O jumped 5.1% after beating analysts'
estimates for quarterly revenue due to high demand for
streaming.
Advancing issues outnumbered decliners by a 1.04-to-1 ratio
on the NYSE. Declining issues outnumbered advancers for a
1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and no new low,
while the Nasdaq recorded 103 new highs and one new lows.