US STOCKS-Wall St gains on Lowe's results, broker comments

* Bank of America, Lennar jump on broker views

* Semiconductor index rises on positive comments

*Lowe's results bolster housing, retailing sectors

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By Rodrigo Campos

NEW YORK, May 18 (Reuters) - U.S. stocks rose on light volume on Monday as a better-than-expected quarterly profit and upbeat outlook from Lowe's Cos Inc (LOW.N: Quote, Profile, Research), the No. 2 U.S. home improvement retailer, fueled hopes the economic slump was easing and spending was stabilizing.

Shares of Home Depot Inc (HD.N: Quote, Profile, Research), Lowe's top rival, rose 6.6 percent to $26.00 a day before the Dow component is scheduled to post quarterly earnings. Shares of Lowe's shot up 8.8 percent to $20.08.

Lowe's raised its full-year forecast due to signs that the decline in the housing market may be ebbing. Lowe's Chief Executive Robert Niblock said consumer confidence has improved in recent weeks, and housing turnover is showing "signs of a bottom." Lowe's numbers also served as a fresh catalyst for investors eager to sustain the market's rally and were a sharp contrast to last week's disappointing April retail sales data. An S&P index of retail stocks gained 3.9 percent.

Shares of homebuilders got a lift from Citigroup's upgrade of Lennar Corp (LEN.N: Quote, Profile, Research) to "buy" from "hold." Lennar shares jumped 16.9 percent to $10.30 and the Dow Jones home construction index .DJUSHB rose 6.8 percent.