US STOCKS-Market falls 1 pct; commodity losses hit shares

* NY Fed business index misses forecast

* Commodity prices sink, hit energy and mining shares

* Dow off 1.3 pct, S&P off 1.4 pct, Nasdaq down 1.4 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early afternoon)

By Caroline Valetkevitch

NEW YORK, May 17 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) dropped more than
1 percent on Monday as steep slides in commodity prices hit
energy and materials shares, while below-forecast data gauging
New York factory activity dented the economic outlook.

Persistent worries about the euro-zone debt crisis, which
analysts say threatens to hurt the global economic recovery,
also fueled bearish sentiment, and a Chinese leading indicator
showed growth may have already peaked in its economy. For
details, see [ID:nTOE64G065]

Shares of Exxon Mobil (XOM.N: ) dropped 1.8 percent to $62.47
while oil futures in New York were down $1.69 at $69.92 a
barrel on worries about demand resulting from a European
slowdown. An index of oil shares (.XOI: ) slipped 2.6 percent
while an energy-based exchange-traded fund (XLE.P: ) fell 2.9

Shares of Freeport-McMoRan Copper & Gold (FCX.N: ) dropped
4.7 percent to $66.46, as copper prices sank.

“There’s this dark cloud of Europe that hangs over the
stock market. Until that clears, I don’t think it’s going to be
easy for the stock market to make much progress,” said Hugh
Johnson, chief investment officer of Johnson Illington Advisors
in Albany, New York.

The Dow Jones industrial average (.DJI: ) was down 141.93
points, or 1.34 percent, at 10,478.23. The Standard & Poor’s
500 Index (.SPX: ) was down 16.31 points, or 1.44 percent, at
1,119.37. The Nasdaq Composite Index (.IXIC: ) was down 32.02
points, or 1.36 percent, at 2,314.83.

The New York Federal Reserve’s index of manufacturing
activity in New York State continued to grow in May, but at a
slower pace and came in far below forecasts. [ID:nN17209874]

Shares of manufacturers tumbled, with Caterpillar (CAT.N: ),
down 3.3 percent at $62.75 and ranking among the heaviest
weights on the Dow.

Losses accelerated at midday as commodity prices extended
losses. Copper for July delivery (HGN0: ) plunged 6.8 percent on
the New York Mercantile Exchange’s COMEX division.

Shares of major U.S. home improvement chain Lowe’s Cos
(LOW.N: ) fell 3.6 percent to $25.14 after giving a disappointing
profit forecast for the year. The Dow Jones U.S. home
construction index (.DJUSHB: ) slid 3.2 percent.

Investing Basics

(Reporting by Caroline Valetkevitch; Editing by Kenneth

US STOCKS-Market falls 1 pct; commodity losses hit shares