S&P, Nasdaq up as data eases economic fear, Dow dips

NEW YORK (Reuters) - Stocks mostly rose on Friday as a drop in oil prices and stronger-than-expected data on consumer sentiment and housing eased concern about the economy and the outlook for profit growth.

But financial shares fell and helped drag the Dow slightly lower. Fannie Mae (FNM.N) and Freddie Mac (FRE.N) shares fell after Standard & Poor's said it may cut the subordinated debt and preferred stock ratings.

Home builders' shares rose after the data on new homes offered a glimmer of hope for the beaten-down housing market.

Big manufacturers, including United Technologies (UTX.N), were another standout sector 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.

"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 out there."

The Dow Jones industrial average (.DJI) dipped 6.68 points, or 0.05 percent, to 11,342.60. The Standard & Poor's 500 Index (.SPX) was up 1.48 points, or 0.12 percent, at 1,254.02, while the Nasdaq Composite Index (.IXIC) was up 23.38 points, or 1.03 percent, at 2,303.49.

Juniper Networks (JNPR.O) shares jumped 17 percent to $26.41 on Nasdaq after it raised its full-year outlook on strong demand for network equipment. Shares of rival Cisco Systems Inc (CSCO.O) gained 2.8 percent to $22.37.

(Reporting by Kristina Cooke; Editing by Jan Paschal)