* Rising oil prices lift energy stocks

* FDIC's bank watch list swells, increasing worries

* Housing data mixed, consumer confidence improves in Aug

* Dow up 0.2 pct; S&P gains 0.4 pct; Nasdaq down 0.2 pct (Updates to close)

By Steven C. Johnson

NEW YORK, Aug 26 (Reuters) - The Dow and S&P 500 rose on Tuesday as hurricane fears lifted oil prices and boosted energy shares, blunting the effect of a report that showed a growing number of problem U.S. banks.

Trading volume was light and volatile, but traders said energy prices were the key mover.

U.S. crude oil CLc1, which at one point broke above $117 a barrel, ended up 1 percent on fear that Hurricane Gustav could disrupt output in the U.S. Gulf.[ID:nSP131495]

Shares of Exxon Mobil (XOM.N: Quote, Profile, Research) rose 1.6 percent to $79.95, making them among the biggest boosts for the S&P and the Dow.