Stocks struggle in early trade

The NASDAQ MarketSite LED video display at the corner of Broadway and 43rd Street in New York City

Major gauges seek direction after weak new home sales report, drop in GDP growth; Microsoft, Bear Stearns in focus.

NEW YORK (CNNMoney.com) -- Stocks were mixed Thursday morning as a big drop in new home sales vied with continued enthusiasm about the prospect of Bear Stearns selling a minority stake in the company.

The Dow Jones industrial average (Charts) was little changed in the early going, after ending the previous session 122 points away from its all-time high above 14,000, which it hit in July.

The broader S&P 500 (Charts) index and the tech-fueled Nasdaq composite (Charts) both added a few points.

All three major gauges had been even higher in the early going, but lost momentum after the new home sales report was released.

New home sales fell to a 795,000 annual unit rate in August, the lowest level in seven years, from an 867,000 unit rate in July. It was a steeper-than-expected decline.

Stocks rose Wednesday after General Motors (Charts, Fortune 500) and its workers' union reached a deal that ended a two-day strike. Also boosting stocks: news that Bear Stearns (Charts, Fortune 500) is talking with Warren Buffett and other investors about buying a stake in the company.

The Bear Stearns news continued to be a support for the stock market Thursday, but it was countered somewhat by the morning's weak economic news, including the new home sales report.

Another report showed that GDP growth was revised down to 3.8 percent in the second quarter from a previous read of 4.0 percent. Economists surveyed by Briefing.com thought it would be revised down to 3.9 percent.

A separate report showed a surprise drop in weekly jobless claims last week.

In corporate news, Microsoft (Charts, Fortune 500) said its Halo 3 video game racked up about $170 million in first day sales.

U.S. light crude oil for November delivery rose $1.25 to $81.55 a barrel on the New York Mercantile Exchange.

Last week, the October contract settled at a record high of $83.32. However, the record price remains below inflation-adjusted highs hit in the early 1980s, which would be equal to at least $95 a barrel today.

Treasury prices rose, lowering the yield on the 10-year note to 4.61 percent from 4.62 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell to another record low versus the euro and also dipped versus other major currencies.

COMEX gold for December delivery rose $4.20 to $739.70 an ounce.