Wall St rises, indexes stay near highs

NEW YORK (Reuters) - U.S. stocks edged up on Thursday as investors bought on early weakness, keeping indexes near multi-year highs, even as both inflation and weekly jobless claims rose more than expected.

U.S. core consumer prices rose at their quickest pace in more than a year in January as the Federal Reserve's monetary policy came into focus again with signs of inflation creeping into the global economy.

Reports that Iran appeared intent on sending two warships through the Suez Canal also weighed on investors already nervous about growing civil unrest in the Middle East.

"How the market shrugged off the Egypt unrest and the continued sporadic unrest throughout the Middle East ... confirm(s) that buyers are using any pause in the market as an opportunity to get in," said Henry (Hank) Smith, chief investment officer at Haverford Trust Co in Philadelphia.

The Dow Jones industrial average was up 8.10 points, or 0.07 percent, at 12,296.27. The Standard & Poor's 500 Index edged up 1.26 points, or 0.09 percent, at 1,337.58. The Nasdaq Composite Index put on 2.47 points, or 0.09 percent, at 2,828.03.

On Wednesday, the S&P 500 rose to double its bear market low two years ago, boosted by earnings and M&A announcements. The index has risen more than 27 percent since the end of August.

The Philadelphia Federal Reserve said its Mid-Atlantic business activity index rose sharply in February, also helping to trim losses.

Smith said most recent economic data has pointed to a reacceleration in the economy.

Helping to support the Dow, manufacturer 3M rose 0.5 percent at $92.80.

Data storage equipment maker NetApp Inc forecast weaker-than-expected profit, blaming a components shortage. Its shares fell 7.8 percent to $53.92.

New U.S. claims for unemployment benefits rose last week, partially reversing the prior week's hefty decline.

(Reporting by Caroline Valetkevitch; additional reporting by Edward Krudy; editing by Jeffrey Benkoe)