Banks cause Wall Street to pare gains

NEW YORK (Reuters) - Stocks pared gains on Thursday after a short-lived rally by retailers gave way to declines in financial services shares after federal regulators urged increased government oversight of investment banks.

The Dow Jones industrial average (.DJI) was up 17.51 points, or 0.14 percent, at 12,831.86. The Standard & Poor's 500 Index (.SPX) was up 0.68 point, or 0.05 percent, at 1,393.25. The Nasdaq Composite Index (.IXIC) was up 4.52 points, or 0.19 percent, at 2,443.01.

(Reporting by Jennifer Coogan; Editing by Kenneth Barry)