Aug. 25 (Bloomberg) -- U.S. stocks were little changed after government reports showed disappointing orders for durable goods and the slowest pace of new home sales this year.

``There's strength in the economy, but it's just not as strong as expectations,'' said Dennis Fitzpatrick, who helps manage $2.9 billion at First Investors Management Co. in New York. ``People are waiting for corporate earnings reports and more substantial economic news before trading goes one way or another.''

H&R Block Inc., the largest U.S. tax-preparation company, tumbled after reporting a wider-than-expected loss. Boeing Co. as the world's No. 2 commercial-aircraft maker won an order from Singapore Airlines Ltd.

The Standard & Poor's 500 Index shed 0.35 to 1095.84 as of 10:41 a.m. in New York. The Dow Jones Industrial Average lost 0.52 to 10,098.11. The Nasdaq Composite Index added 1.19, or 0.1 percent, to 1838.08.

Eight stocks fell for every seven that rose on the New York Stock Exchange. Some 258 million shares changed hands on the Big Board, 8 percent less than the same time a week ago.

The S&P 500 has bounced between gains and losses over the last three days. NYSE trading has been below the three-month daily average for the last eight days. Activity historically slows toward the end of August as traders and investors go on vacation amid a dearth of earnings and economic news.

Since its 2004 low on Aug. 12, the S&P 500 has jumped 3 percent. The rally has faded this week, with the index down 0.3 percent. The S&P 500 is headed for a second consecutive monthly drop on concern soaring oil prices will curb consumer spending and corporate profit growth.

Durable Goods

Orders for durable goods, excluding transportation equipment, rose 0.1 percent last month, the Commerce Department said. Economists had expected an advance of 1.3 percent, based on a Bloomberg News survey.

Including transportation, orders climbed 1.7 percent, more than expected. Bookings surged for commercial aircraft and demand increased for business equipment.

In another report, purchases of new homes fell more than forecast in July to a 1.134 million annual rate. Economists had expected sales would decline to a 1.3 million annual rate, according to a Bloomberg survey.

H&R Block

H&R Block slid $2.73, or 5.3 percent, to $48.50, for the second-steepest drop in the S&P 500. The company said it had a net loss of 26 cents a share for the first quarter ended July 31. It was expected to lose 5 cents, according to the average estimate of six analysts surveyed by Thomson Financial.

Shares of Boeing climbed 49 cents, or 1 percent, to $51.40, for the biggest gain in the Dow average. The world's No. 2 commercial-aircraft maker won a $3.7 billion order from Singapore Airlines Ltd., Asia's fourth-largest carrier.

Hercules Inc. gained 45 cents, or 3.5 percent, to $13.31, advancing the most on the S&P 500. The specialty chemicals maker said it reached agreements with insurers that will reimburse the company for some asbestos-related liabilities.

Banknorth Group Inc., which operates banks in the northeastern U.S., rose $4.20 to $35.90. Toronto-Dominion Bank, Canada's second-largest bank by assets, said it is in talks over a ``possible'' purchase of Banknorth.

Ditech Communications Corp., a designer of fiber-optic network equipment, jumped $4.05, or 22 percent, to $22.30. Fiscal first-quarter profit, excluding some items, was 28 cents a share, more than the 22-cent average Thomson estimate.

Gap Slumps

Gap Inc., the largest U.S. clothing chain, slumped 79 cents to $19.16. Merrill Lynch & Co. analyst Mark Friedman cut his rating on the company to ``neutral'' from ``buy'' amid concerns about sluggish demand in the coming months and a product shift that targets older customers rather than back-to-school sales.

Applebee's International Inc. fell 57 cents to $23.47. The operator of more than 1,600 casual dining restaurants in the U.S. said sales for the four weeks ended Aug. 22 were hurt by Hurricane Charley and that the Athens Olympic Games will hamper sales in the first week of the September period.

OmniVision Technologies Inc. sank $1.03 to $10.54. The maker of chips for digital cameras said it expects fiscal second- quarter earnings of 20 cents to 25 cents a share, less than the 32-cent estimate in a Thomson poll.

To contact the reporter on this story: John Melloy in New York at jmelloy@bloomberg.net.

Last Updated: August 25, 2004 10:44 EDT