US STOCKS-Wall St loses ground on oil, financials

(Updates with Nasdaq turning negative)

NEW YORK, July 30 (Reuters) - The Nasdaq turned negative on Wednesday, while the Dow and the S&P 500 pared gains, as a rebound in oil prices and a drop in financial shares punctured Wall Street's earlier rally.

The Dow Jones industrial average .DJI rose 48.04 points, or 0.42 percent, to 11,445.60. The Standard & Poor's 500 Index .SPX inched up 4.22 points, or 0.33 percent, to 1,267.42. The Nasdaq Composite Index .IXIC shed 7.11 points, or 0.31 percent, to 2,312.51. (Reporting by Ellis Mnyandu; Editing by Jan Paschal)