US STOCKS-Outlook for economy keeps market in check

* Retailers, housing data weigh on markets

* Final 3rd quarter GDP in line with expectations

* Dow down 0.8 pct, S&P down 0.3, Nasdaq up 1.5 pct

* For up to the minute market news, please click on [STXNEWS/US]

By Chuck Mikolajczak

NEW YORK, Dec 23 (Reuters) - Fading hope for a recovery in the housing market and worry about the outlook for consumer spending kept U.S. stocks in check on Tuesday, with weakness in retailers and car makers getting in the way of an early rally.

Major benchmarks held near the unchanged mark after a spate of data showed home sales down again and the U.S. economy contracted in the third quarter thanks to the biggest drop in consumer spending in 28 years.

The gross domestic product figure confirmed that the economy contracted at an annual rate of 0.5 percent as economists had expected. For details, see [ID:nN23530274]. Focus has shifted to the current fourth quarter, which is expected to be much weaker.

Housing data showed existing home sales plunged 8.6 percent and new-home sales fell 2.9 percent in November. [ID:nLN73100]