(Adds comment, more on individual share moves)
* Financials gain as 10-yr Treasury yields top 3 pct
* Walmart falls on bearish Goldman Sachs comments
* Indexes: Dow and S&P up 0.1 pct, Nasdaq gains 0.3 pct
By Shreyashi Sanyal
Sept 14 (Reuters) - U.S. stocks inched higher for a fifthday on Friday, as declines in real estate and utilities wereoffset by gains for banking stocks, driven by a rise in 10-yearU.S. government bond yields above 3 percent.
Financial stocks rose .SPSY 0.52 percent, the most amongthe 11 major S&P 500 sectors, after the 10-year U.S. Treasuryyield broke back above the key technical level for the firsttime since the start of August. US/
Helping drive yields was August U.S. retail sales whichrecorded their smallest gain in six months. An upward revisionto July data also kept intact expectations of strong economicgrowth in the third quarter. urn:newsml:reuters.com:*:nL2N1VZ1PB
Seven of the S&P's 11 sectors, however, were lower, led by a1.5-percent slide in the real estate index .SPLRCR and a1.1-percent drop in utilities .SPLRCU .
Weighing on utilities was NiSourceNI.N , which tumbled10.1 percent after fire investigators said they suspected thecompany's unit Columbia Gas was linked to a series of gasexplosions in Boston suburbs on Thursday. urn:newsml:reuters.com:*:nL2N1W00A7
"Passing the 3 percent level should buoy financials," saidTom White, chief market strategist at TradeWise Advisors inChicago, Illinois.
"Investors are being prudent because they are going intosectors that have been beaten up and taking profits out fromthose that have rallied. It's going to be a stock-picker'smarket."
At 10:59 a.m. EDT the Dow Jones Industrial Average .DJI was up 0.1 percent at 26,175.05. The S&P 500 .SPX rose 0.08percent to 2,906.56 and the Nasdaq Composite .IXIC 0.26percent to 8,034.30.
The Federal Reserve said on Friday that U.S. industrialproduction rose 0.4 percent in August, as strong output in automanufacturing offset lackluster production in the rest of thefactory sector. urn:newsml:reuters.com:*:nFOMEKEE2Q
That, added to signs this week that Beijing and Washingtonare returning to the table, helped prod industrial stocks 0.1percent higher .SPLRCI .
Tech stocks .SPLRCT gained 0.17 percent, despite AppleAAPL.O slipping 0.6 percent, with Adobe SystemsADBE.O rising 3.2 percent after the company topped quarterly revenueand profit expectations. urn:newsml:reuters.com:*:nL3N1VZ5U5
WalmartWMT.N fell 0.6 percent after Goldman Sachs raisedquestions around the retailer's purchase of a majority stake inIndia's Flipkart.
Declining issues outnumbered advancers for a ratio of1.33-to-1 on the NYSE, but advancing issues outnumbereddecliners by a 1.07-to-1 on the Nasdaq.
The S&P index recorded 33 new 52-week highs and no new lows,while the Nasdaq recorded 63 new highs and 32 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by ShounakDasgupta and Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.email@example.com))