US STOCKS-Dow, S&P 500 briefly turn negative on financials

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

The S&P comment added to selling pressure on financial stocks. Fannie Mae shares declined 5.4 percent to $11.38 and shares of Freddie Mac were down 6 percent at $8.27.

The Dow Jones industrial average .DJI was down 12.13 points, or 0.11 percent, at 11,337.15. The Standard & Poor's 500 Index .SPX was up 0.68 point, or 0.05 percent, at 1,253.22. The Nasdaq Composite Index .IXIC was up 17.40 points, or 0.76 percent, at 2,297.51. (Reporting by Steven Johnson; Editing by Kenneth Barry)