US STOCKS-Market turns up with bond insurers, financials

(Updates to show market turning higher)

NEW YORK, Jan 31 (Reuters) - U.S. stocks turned higher on Thursday as shares of bond insurers and other financial stocks rose, offsetting jobless claims data that pointed to trouble for the economy.

MBIA Inc (MBI.N: Quote, Profile, Research) shares were up 0.7 percent at $14.03, erasing early losses, as the chief executive said the bond insurer will have significant losses but that there's nothing to justify the share price decline. The company reported a loss early on Thursday.

The Dow Jones industrial average .DJI was up 5.28 points, or 0.04 percent, at 12,448.11. The Standard & Poor's 500 Index .SPX was up 2.18 points, or 0.16 percent, at 1,357.99. The Nasdaq Composite Index .IXIC was up 3.83 points, or 0.16 percent, at 2,352.83. (Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)