US STOCKS-Dow, S&P dip; Nasdaq ekes out gain on Dell, Intel

                                
  
 * Dell, Intel advance on earnings; Nasdaq closes higher
 * Consumer sentiment at 4-month low; Dow halts 8-day gain
 * Dow off 0.4 pct, S&P off 0.2 pct, but Nasdaq up 0.05 pct
 (Updates to close)
                                
 By Angela Moon
                                
 NEW YORK, Aug 28 (Reuters) - U.S. stocks mostly slipped on
Friday after a weak consumer sentiment report offset positive
news from bellwethers Dell Inc <DELL.O> and Intel Corp
<INTC.O>.
                                
 Support from the two companies, however, let the Nasdaq
eke out a tiny gain.
                                
 All three major indexes still posted their second weekly
advance, although the gains were relatively modest.
                                
 With U.S. stocks up about 50 percent from multi-year lows
in March, investors are concerned that the rally may have run
its course, and that with many market players taking
last-minute vacations, there aren't enough buyers to push
stocks up further.
                                
 Consumer sentiment in August slid to a four-month low on
worries about high unemployment and personal finances, a
Reuters/University of Michigan survey showed, also curbing the
market's appetite for risk.
                                
 For details see [ID:nN28358241]
                                
 "Expectations are higher and any kind of data that doesn't
exceed forecasts with rosy numbers can't move the market,"
said Alan Lancz, president of Alan B. Lancz & Associates in
Toledo, Ohio.
                                
 "I think the absence of buyers is triggering traders to
sell into the weekend. Next week is basically the last week of
the summer, and with more buyers away, there would be fewer
catalysts of bull momentum."
                                
 Intel led the Nasdaq's major gainers and helped the index
nudge back into positive territory in late afternoon trading.
                                
 Intel's stock climbed 4 percent to $20.25 after the chip
maker raised its third-quarter revenue outlook on
stronger-than-expected demand for its microprocessors and
chipsets. [ID:nN28172958]
                                
 Dell rose 1.8 percent to $15.93 and Marvell Technology
<MRVL.O> gained 5 percent to $15.36, after both companies
reported second-quarter earnings late Thursday that beat
expectations. [ID:nBNG487997] and [ID:nN27214703]
                                
 The Dow Jones industrial average <.DJI> declined 36.43
points, or 0.38 percent, to end at 9,544.20. The Standard &
Poor's 500 Index <.SPX> lost only 2.05 points, or 0.20
percent, to 1,028.93.
                                
 But the Nasdaq Composite Index <.IXIC> inched up 1.04
points, or 0.05 percent, to close at 2,028.77.
                                
 For the week, the Dow advanced 0.4 percent, while the S&P
500 gained 0.3 percent and the Nasdaq rose 0.4 percent.
                                
 The losses were broad-based, with health-care stocks
helping to lead the declines. Merck & Co Inc <MRK.N> was down
1.7 percent at $32.32. The S&P health care index <.GSPA> was
off 0.9 percent.
                                
 Among the blue-chip Dow industrials, McDonald's Corp
<MCD.N> ranked among the top losers, falling 1 percent to
$56.07.
                                
 A bright spot was provided by Tiffany & Co <TIF.N>, which
surged 11.3 percent to $37.57 in New York Stock Exchange
trading after it reported strong second-quarter results and
lifted its outlook. [ID:nBNG513912]
                                
 Citigroup <C.N> rose 3.6 percent to $5.23 and the S&P
financial index <.GSPF>, one of the few sectors among Friday's
advancers, edged up 0.2 percent.
                                
 Troubled financials continued to dominate trading. Shares
of the two largest U.S. home funding companies, Fannie Mae and
Freddie Mac, gained sharply, extending a trend seen earlier
this week. Freddie Mac <FRE.N> was up 7.1 percent at $2.40 and
Fannie Mae <FNM.N> gained 6.3 percent to $2.04.
                                
 The bailed-out insurer American International Group Inc
<AIG.N> rose 5 percent to $50.23, up 53 percent for the week.
                                
 Earlier in the day, the S&P 500 climbed to 1,039.47, its
highest intraday level since Oct. 14, 2008, before turning
negative after the consumer sentiment data.
                                
 In other data released on Friday, a report from the
Commerce Department showed consumer spending edged up 0.2
percent in July, largely driven by the government's
"cash-for-clunkers" program, while personal incomes were flat
in June.
                                
 Volume was light on the New York Stock Exchange, with 1.19
billion shares changing hands, below last year's estimated
daily average of 1.49 billion.
                                
 On the Nasdaq, about 2.36 billion shares traded, slightly
above last year's daily average of 2.28 billion.
                                
 Advancing stocks slightly outnumbered declining ones on
the NYSE by 1,507 to 1,490.
                                
 On the Nasdaq, though, the opposite trend held sway: About
17 stocks fell for every 9 that rose.
 (Editing by Jan Paschal)