US STOCKS-Weak consumer data saps Wall St gains

                                
   * Dell shares soar after Q2 profit tops view
                                
 * Intel raises Q3 revenue forecast, stock jumps
                                
 * Consumer confidence hits four-month low
                                
 (Updates to late morning)
                                
 By Rodrigo Campos
                                
 NEW YORK, Aug 28 (Reuters) - U.S. stocks gave up most of
their gains on Friday after initially spiking to 10-month highs
as weak consumer sentiment data offset an upbeat forecast from
chipmaker Intel and better-than-expected profit from computer
maker Dell.
                                
 A Reuters/University of Michigan survey showed consumer
confidence fell to its lowest in four months in August on
worries over high unemployment and dismal personal finances,
though the mood improved from earlier this month.
[ID:nN28361969].
                                
 The Nasdaq was buoyed after Intel Corp <INTC.O> raised its
outlook for third-quarter revenue and Dell Inc <DELL.O>, the
world's No. 2 personal computer maker behind Hewlett-Packard Co
<HPQ.N>, posted a strong quarterly performance and several
brokerages raised their price target on the stock. For details
see [ID:nN27317400] [ID:nWNAB4847] [ID:nBNG487997].
                                
 The PHLX semiconductor index <.SOXX> rose 2.2 percent,
while Dell shot up 4 percent to $16.29, and Intel increased 4.6
percent to $20.36.
                                
 "You would think after the Intel blowout numbers the market
would have really picked up a lot of steam," said Angel Mata,
managing director of listed equity trading at Stifel Nicolaus
Capital Markets in Baltimore.
                                
 "It's just telling you that this market has about as much
good news baked into as it can take. We're at that point now
where there is no more good news that could come out that can
really juice this market."
                                
 The Dow Jones industrial average <.DJI> dropped 30.39
points, or 0.32 percent, to 9,550.24. The Standard & Poor's 500
Index <.SPX> shed 0.77 points, or 0.07 percent, to 1,030.21.
The Nasdaq Composite Index <.IXIC> gained 6.39 points, or 0.32
percent, to 2,034.12.
                                
 The Dow industrials were weighed down by declines in
consumer companies like McDonald's Corp <MCD.N>, off 1.2
percent to $56.
                                
 Shares of Apple Inc <AAPL.O> rose 0.5 percent to $170.26
after China Unicom <CHU.N><0762.HK>, China's No. 2 mobile
carrier, agreed to sell the iPhone in China, giving Apple
access to the world's largest mobile market. China Unicom's
U.S.-listed shares gained 4.1 percent to $14.66.
[ID:nHKF082431]
                                
 Earlier Friday, the government said U.S. consumer spending
rose as expected in July, lifted by the "cash-for-clunkers"
program that fueled demand for autos. [ID:nN28359458].
                                
 After the market open, the S&P 500 rose to 1,039.47, its
highest intraday reading since Oct. 14, 2008.
                                
 (Reporting by Rodrigo Campos; Additional reporting by Chuck
Mikolajczak; Editing by Jeffrey Benkoe)