* Crude prices stabilize on output freeze deal
* Financials gains, led by banks
* ADT surges on Apollo Global buyout offer
* Community Health slumps after unexpected loss
* Indexes up: Dow 0.97 pct, S&P 1.15 pct, Nasdaq 1.63 pct (Updates to open)
By Tanya Agrawal
Feb 16 (Reuters) - Wall Street was higher on Tuesday morning, extending a rally from Friday, as cautious investors looked for bargains among beaten-down financial and consumer discretionary stocks and as oil prices stabilized.
Brent crude oil prices hit a 12-day high after four of the world's largest producers agreed to freeze output, but quickly gave up those gains to trade flat as investors had hoped for an outright cut in supplies.
U.S. crude was around $30 per barrel and Brent at about $33.
"We are looking at a rally at the open, helped by the recovery in oil prices," said Peter Cardillo, chief market economist at First Standard Financial in New York.
All the 10 major S&P sectors were higher, with the consumer discretionary index's 1.61 percent rise leading the advancers.
Banks again gained on Tuesday after the S&P financial index posted its largest daily percentage gain since November 2011 on Friday.
Bank of America rose 2.9 percent. Goldman Sachs gained 2.2 percent and was the biggest boost to the Dow.
At 9:43 a.m. ET (1443 GMT) the Dow Jones industrial average was up 154.22 points, or 0.97 percent, at 16,128.06.
The S&P 500 was up 21.49 points, or 1.15 percent, at 1,886.27 and the Nasdaq Composite was up 70.50 points, or 1.63 percent, at 4,408.02.
Slumping oil prices, fears of a China-led slowdown in the global economy, uncertainty over the central banks' monetary policies and unflattering U.S. corporate reports have roiled the markets this year.
The S&P 500 is down more than 8 percent since the beginning of the year, excluding Tuesday's gains, led by financial and commodities-related stocks.
ADT surged 51 percent to $40.57 after private equity firm Apollo Global Management agreed to buy the electronic security services provider for $7 billion. Apollo was up 0.7 percent at $13.49.
Community Health Systems slumped 27.2 percent to $13.52, after posted an unexpected quarterly adjusted loss. The results also weighed on other hospital operators.
Groupon jumped 17.6 percent to $3.40 after Alibaba disclosed a 32.9 million stake in the company. Alibaba was up 5.4 percent at $64.20.
Advancing issues outnumbered decliners on the NYSE by 2,423 to 426. On the Nasdaq, 1,989 issues rose and 425 fell.
The S&P 500 index showed three new 52-week highs and two new lows, while the Nasdaq recorded seven new highs and 14 new lows. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza)