US STOCKS-Market flat; financials, retail weigh

(Updates to show Dow, S&P briefly dipping)

NEW YORK, March 28 (Reuters) - The Dow industrials and S&P 500 index were flat after briefly turning down on Friday, with retail shares dragged down by a lowered outlook from J.C. Penney Co Inc (JCP.N: Quote, Profile, Research) and financial shares slipping on persistent worries over the sector's outlook.

The Dow Jones industrial average .DJI was up 4.15 points, or 0.03 percent, at 12,306.61. The Standard & Poor's 500 Index .SPX was up 1.16 points, or 0.09 percent, at 1,326.92. The Nasdaq Composite Index .IXIC was up 3.65 points, or 0.16 percent, at 2,284.48. (Reporting by Caroline Valetkevitch; Editing by James Dalgleish)