US STOCKS-Market rises as data eases economic fears

* 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: Quote, Profile, Research, Stock Buzz) 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: Quote, Profile, Research, Stock Buzz) 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.