US STOCKS-Shares snap string of gains on weaker oil

                                
 * Crude oil falls 3 percent on demand concerns
                                
 * September consumer sentiment strongest in three months
                                
 * FedEx sees first-quarter profit topping view
                                
 * Dow down 0.2 pct, S&P down 0.1 pct, Nasdaq off 0.3 pct
 (Updates to midday, changes byline)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Sept 11 (Reuters) - U.S. stocks fell modestly on
Friday, snapping a five-day streak of gains, as declining crude
oil prices offset positive economic data and a rosy outlook
from shipping company FedEx Corp <FDX.N>.
                                
 Analysts said they were not surprised to see the pullback
by stocks after recent encouraging data from around the world
and some positive corporate outlooks.
                                
 October crude futures sank 3.1 percent to $69.72 per
barrel, pressured by investor concerns about demand as refined
fuel inventories rise. For details, see [ID:nN11437969].
                                
 Chevron Corp <CVX.N> fell 1.1 percent to $70.64 and was the
top drag on the Dow.
                                
 "Oil prices are sliding until we get some pickup in
demand," said John Canally, investment strategist and economist
for LPL Financial in Boston. "Demand has been weaker than
people thought in the U.S. That's holding prices down a little
bit."
                                
 The Dow Jones industrial average <.DJI> was down 16.78
points, or 0.18 percent, at 9,610.55. The Standard & Poor's 500
Index <.SPX> was down 0.73 point, or 0.07 percent, at 1,043.39.
The Nasdaq Composite Index <.IXIC> lost 5.24 points, or 0.25
percent, at 2,078.69.
                                
 Losses were limited in the S&P after FedEx raised its
first-quarter profit view and said its earnings in the first
and second quarters would be above expectations.
[ID:nN11440004]
                                
 The company cited its outlook for fuel prices and
"continued modest recovery in the global economy" for the
outlook, which boosted its stock 6.7 percent to $77.49. The
outlook also lifted rival UPS <UPS.N> 4.3 percent higher to
$58.69.
                                
 "The FedEx news is a very bullish sign. It's another
company doing a good job managing its costs," said David Katz,
chief investment officer at Matrix Asset Advisors in New York.
                                
 Also curbing the market's downside was data from the
Reuters/University of Michigan Surveys of Consumers, which
showed that consumer sentiment rose more than expected in early
September, moving to its strongest level in three months.
[ID:nN11377778]
                                
 Surprisingly strong Chinese industrial output and other
economic data also underscored optimism that the global economy
is pulling out of a slump. [ID:nPEK13979].
                                
 "The vast majority of economic data and corporate data have
been positive and moving in a good direction over the past few
months," Katz said.
                                
 "We're seeing initial signs that things are improving. The
markets have had a nice boost up over the past few weeks and at
some point, it's going to slow. We wouldn't make anything of
that."
                                
 Markets have risen for the past five days, the longest
winning streak since November.
                                
 Shares of Morgan Stanley <MS.N> rose 1.4 percent to $29.06
after Citigroup raised its price target on the stock, and a day
after it said its chief executive would be stepping down.
[ID:nN10279831] and [ID:nBNG520612].
                                
 Medtronic Ind <MDT.N> fell 1.6 percent to $38.38 after it
said it was warning doctors about problems with 6,300
implantable heart devices because the batteries in the devices
drain sooner than normal. [ID:nN11445873].
 (Reporting by Ryan Vlastelica; Editing by Kenneth Barry)