US STOCKS-Dow, S&P 500 pare gains on S&P comment on GSEs

NEW YORK, July 25 (Reuters) - The Dow and S&P 500 briefly pared gains on Friday after Standard & Poor's said it may cut the subordinated debt and preferred stock ratings of mortgage finance firms Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz).

The Nasdaq remained firmly in positive territory.

The Dow Jones industrial average .DJI neared a session low but was up 28.74 points, or 0.25 percent, at 11,378.02. The Standard & Poor's 500 Index .SPX was up 4.72 points, or 0.38 percent, at 1,257.26. The Nasdaq composite index .IXIC rose 18 points, or 0.8 percent, to 2298.

Shares of Freddie Mac fell about 8 percent to $8.10 while Fannie shares were down 7 percent to $11.22. (Reporting by Steven Johnson; Editing by Kenneth Barry)