US STOCKS-Financials, oil price drop lift Wall Street

(Updates to afternoon, changes byline)

By Cal Mankowski

NEW YORK, April 24 (Reuters) - U.S. stocks rose on Thursday, with the Dow at its highest since January, boosted by financial company shares on optimism about the sector's outlook and by a pullback in oil prices.

Positive broker views on Apple Inc (AAPL.O: Quote, Profile, Research) also boosted sentiment.

All three indexes at one point were up more than 1 percent, with the financial sector giving the Dow and S&P 500 their biggest boost.

Travelers Cos Inc (TRV.N: Quote, Profile, Research), one of the largest U.S. property insurers, rose 4.8 percent to $50.59 after it raised its 2008 outlook. Shares of insurer American International Group (AIG.N: Quote, Profile, Research) jumped 8.1 percent to $47.42.

"The growing consensus is we've seen the worst out of the financial sector and the economy overall, and people are willing to take more risk and exposure in equities," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

Also, Peter Jankovskis. director of research at OakBrook Investments LLC in Lisle, Illinois, said investors appeared to be anticipating supportive action for the financial stocks when the Federal Reserve meets on interest rates next week.

Oil prices CLc1 were down more than $3 a barrel at $114.90.