US STOCKS-Market rises on banks, lower oil; Alcoa up late

* $5 drop in price of oil eases spending concerns

* Bernanke says Fed may extend emergency lending

* Alcoa shares rise after the bell following results (Updates with Alcoa share move after the bell)

By Kristina Cooke

NEW YORK, July 8 (Reuters) - U.S. stocks rose in another turbulent session on Tuesday as a pullback in oil prices eased worries about consumer and business spending, while financial shares gained after the Fed chairman said he may keep open a lifeline for banks.

Technology and retail companies bounced back after a sharp sell-off last week, helping the S&P 500 stave off a bear market for another day. Wal-Mart (WMT.N: Quote, Profile, Research) was the biggest boost to the Dow, and Apple (AAPL.O: Quote, Profile, Research) rose ahead of Friday's new iPhone launch, helping the Nasdaq.

The positive mood continued after the closing bell, with aluminum producer Alcoa Inc (AA.N: Quote, Profile, Research) posting stronger-than-expected results. Its shares rose more than 5 percent after the bell.

Financial shares climbed after Federal Reserve Chairman Ben Bernanke said in a speech that the U.S. central bank may extend emergency lending facilities for big Wall Street banks past year-end, showing the Fed is determined to stop the housing-inspired credit crisis from wreaking further havoc on the economy.

Treasury Secretary Henry Paulson added to that optimism when he said Treasury was working on ways to shore up mortgage financing. And JPMorgan Chase & Co's (JPM.N: Quote, Profile, Research) chief executive, Jamie Dimon, said in a speech that the future of the U.S. economy is bright, though more short-term suffering is ahead.