US STOCKS-Market falls on concerns about the consumer

(Updates to early morning)

* U.S. stocks slip on concerns about the consumer

* Consumer confidence data tumbles to lowest in 28 years

* Energy stocks top gaining sector as oil hits record

NEW YORK, May 16 (Reuters) - U.S. stocks slipped on Friday after the price of oil hit a record and consumer sentiment data came in surprisingly weak, reviving concerns over spending.

The unease about the state of the American shopper offset earlier optimism following a surprise rise in U.S. housing starts and stronger-than-expected earnings from retailers Nordstrom (JWN.N: Quote, Profile, Research) and Abercrombie & Fitch (ANF.N: Quote, Profile, Research).

"The consumer is around two-thirds of the U.S. economy, so when you look at energy prices and housing prices weakening in key areas, these are all aspects keeping the consumer weak, and sentiment numbers are reflecting that," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.

The Dow Jones industrial average .DJI fell 29.39 points, or 0.23 percent, to 12,963.27. The Standard & Poor's 500 Index .SPX was down 2.54 points, or 0.18 percent, at 1,421.03. The Nasdaq Composite Index .IXIC was down 15.59 points, or 0.62 percent, at 2,518.14.

U.S. consumer confidence tumbled to its lowest in 28 years this month, according to the Reuters/University of Michigan Surveys of Consumers, as short-term inflation expectations hit their highest since the stagflationary era of the early 1980s.