* Consumer sentiment, home sales data ease economic fears
* Oil's pullback lends support to market
* Dow up 0.2 pct, S&P 500 up 0.4 pct, Nasdaq up 1.3 pct
(Updates to close)
By Kristina Cooke
NEW YORK, July 25 (Reuters) - U.S. stocks rose on Friday
as a drop in oil prices, and stronger-than-expected data on
consumer sentiment and housing blunted the latest concerns
about the health of U.S banks.
The Nasdaq rose more than 1 percent, helped not only by
lower oil prices, but also after Juniper Networks <JNPR.O>
raised its full-year outlook on strong demand for network
equipment. The results, which sent Juniper shares up 17.7
percent, showed strength among companies linked to the
Internet.
Another drop in oil prices, adding to a sharp sell-off
over the last two weeks on signs of weakening demand, was
particularly welcomed by investors in airlines and
industrials.
But financial stocks weighed on the Dow and S&P. Wachovia
Corp <WB.N> shares fell 7.6 percent, leading bank stocks lower
a day after the fourth-largest U.S. bank said its finance
chief was quitting. In addition, a brokerage analyst
downgraded the shares.
Home builders rose after the data on new homes gave a
glimmer of hope for the beaten-down housing market.
Big manufacturers, including United Technologies <UTX.N>,
rose after a report that showed an unexpected jump in orders
for long-lasting durable goods.
"We have oil down, the better-than-expected economic
indicators and yet we are not up very much," said Al Kugel,
chief investment strategist at Atlantic Trust in Chicago.
"One thing that is the dampening effect is that the
financials are still not doing very well. Everybody is asking
how much more bad news is there out there."
.The Dow Jones industrial average <> rose 21.41 points,
or 0.19 percent, to 11,370.69. The Standard & Poor's 500 Index
<.SPX> added 5.22 points, or 0.42 percent, to 1,257.76, while
the Nasdaq Composite Index <> jumped 30.42 points, or
1.33 percent, to 2,310.53.
For the week, the Dow fell 1.1 percent and the S&P 500
dipped 0.2 percent, while the Nasdaq rose 1.2 percent.
U.S. oil futures <CLc1> slid $2.23 to settle at $123.26 a
barrel.
Consumer sentiment rebounded unexpectedly this month after
falling to levels last seen in the early 1980s, as tax rebate
checks helped offset high gas prices, while new home sales in
July were not as weak as expected. See: []
Among technology shares, chip maker Qualcomm Inc <QCOM.O>
helped lead gains on the Nasdaq, rising 3.9 percent to $54.45,
after several brokerages raised their price targets on the
stock.
Juniper's shares surged 17.7 percent to $26.57 on Nasdaq.
Its results helped show that companies were still investing in
network equipment, particularly those items vital to handling
increased Internet traffic. Shares of rival Cisco Systems
<CSCO.O> gained 3.1 percent to $22.43.
Among the Dow's major advancers, United Technologies added
1.6 percent to $65.23 on the NYSE.
The Dow Jones home construction index <DJUSHB> rose 1.5
percent. Pulte Homes Inc <PHM.N> shot up 2.5 percent to
$11.31, two days after reporting a smaller quarterly loss
compared with a year ago.
Sounding a downbeat note, though, was apparel retailer
Abercrombie & Fitch Co <ANF.N>, which fell 7.5 percent to
$55.86 a day after the firm's chief financial officer
resigned. The S&P retail index was down 1.1 percent.
And the banking sector also weighed on the market.
Wachovia's stock <WB.N> lost 7.6 percent, or $1.19, to $14.50.
Morgan Keegan cut its rating on the bank to "underperform."
Fannie Mae <FNM.N> shares fell 3.9 percent to $11.55 and
Freddie Mac <FRE.N> shares shed 6.1 percent to $8.27.
Standard & Poor's said it may cut the subordinated debt
and preferred stock ratings.
Other financial shares also struggled as investors
continued to book profits after the sector's recent rally.
Bank of America <BAC.N>, the No. 2 U.S. bank, fell 3.5
percent to $29.58. Citigroup <C.N> shares dropped 1.1 percent
to $18.85. both dragged on the Dow industrials and the S&P,
limiting their gains.
Trading volume was low on the New York Stock Exchange,
with about 1.29 billion shares changing hands, below last
year's estimated daily average of roughly 1.90 billion, while
on Nasdaq, about 2.02 billion shares traded, also below last
year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by
about 9 to 7 on the NYSE and by 17 to 11 on the Nasdaq.
(Editing by Jan Paschal)
