* GE lifts dividend again, stock rises
* Netflix gains ahead of joining S&P 500
* Dow up 0.2 pct, S&P up 0.5 pct, Nasdaq up 0.7 pct (Updates to late afternoon, changes byline)
By Rodrigo Campos
NEW YORK, Dec 10 (Reuters) - U.S. stocks rose on Friday and were on track for a second week of gains following upbeat economic data on consumer sentiment and trade, while bulls were encouraged as the S&P 500 held above a key technical level.
Industrial shares led the pack, with General Electric
After the S&P 500 ended on Thursday above 1,228, the closely watched 61.8 percent retracement of its drop from late 2007 to March 2009, the benchmark index managed to hold above that key resistance level for a second day. It also hit its highest level since the week when Lehman Brothers collapsed in 2008.
"That met some pretty significant resistance so closing above there and staying above there is a pretty good sign," said Art Hogan, chief market analyst at Jefferies & Co in Boston.
The S&P 500 tried and failed to breach 1,228 back in April and later in early November, with both attempts followed by steep declines.
The Dow Jones industrial average gained 18.24 points, or 0.16 percent, to 11,388.30. The Standard & Poor's 500 Index rose 5.61 points, or 0.45 percent, to 1,238.61. The Nasdaq Composite Index added 18.36 points, or 0.70 percent, to 2,635.03
The Nasdaq Composite, buoyed by a 2.2 percent gain in shares of Oracle Corp, hit its highest level since December 2007. Oracle was at $29.92 in late afternoon trade.
In the latest signs of improvement in the U.S. economic recovery, data showed consumer sentiment rose more than expected in early December, according to the Thomson Reuters/University of Michigan survey, while import prices in November climbed at their fastest pace in a year. Another positive signal came from the Commerce Department, which said the U.S. trade deficit narrowed much more than expected in October.
Overseas news helped boost equities, after a slew of data showed China's imports and exports jumped in November, bank lending topped forecasts and property investment powered ahead. China increased reserve requirements for banks but kept interest rates on hold.
GE jumped 3.3 percent to $17.69 after the company said quarterly payments to shareholders will increase by 2 cents to 14 cents per share.
Shares of Netflix Inc rose after Standard & Poor's said the movie rental company, along with F5 Networks Inc, Newfield Exploration Co and Cablevision Systems Corp, will be added to the S&P 500 index after trading closes next Friday.
Netflix added 1.7 percent to $194.37, Cablevision jumped 3.8 percent to $34.64, Newfield gained 3.1 percent to $72.23 and F5 Networks rose 2.5 percent to $142.50. (Reporting by Rodrigo Campos; Editing by Jan Paschal)