US STOCKS-Market up on consumer data, energy companies gain

* U.S. stocks rise in thin volume

* Rising oil boosts energy shares

* U.S. consumer confidence up more than expected in August

* Dow, Nasdaq up 0.3 pct, S&P 500 up 0.6 pct

(Updates to midmorning)

NEW YORK, Aug 26 (Reuters) - U.S. stocks edged higher in thin volume on Tuesday, as energy companies gained on a $2 jump in the price of oil and data showed U.S. consumer confidence rose far more than expected in August as worries about inflation eased.

But housing data was mixed. Sales of newly constructed U.S. single-family homes in July were lower than economists expected, a government report showed, but rose from a June pace that was the slowest in nearly 17 years.

Energy companies led the S&P 500 higher as oil rose on concerns about possible disruption to U.S. offshore oil and gas output from a strengthening Hurricane Gustav. Shares of Anadarko Petroleum (APC.N) jumped 6 percent after the company announced an up to $5 billion share repurchase program.

Financial companies which had fallen sharply on Monday on credit fears also bounced back, helping to support the market.