US STOCKS-Wall St drops 1 pct as commodity losses hit stocks

* NY Fed business index misses forecast

* Commodity prices sink, hit energy and mining shares

* Dow off 1.2 pct, S&P off 1.3 pct, Nasdaq down 1.1 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

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 soured investor sentiment.

Analysts said worries persist about the euro-zone debt
crisis, which they said threatens to hurt the global economic
recovery. Adding to those fears, 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 1.5 percent to
$62.65 while oil futures in New York were down $2 at $69.61 a
barrel. An index of oil shares (.XOI: ) slipped 2.2 percent
while an energy-based exchange-traded fund (XLE.P: ), or ETF,
fell 2.5 percent.

Shares of Freeport-McMoRan Copper & Gold (FCX.N: ) dropped
4.6 percent to $66.51, as copper prices sank.

“There are still a lot of fears in the market. Maybe
things globally are not as good as we had thought,” said Frank
Cholly Sr., senior market strategist at Lind-Waldock in

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. For details, see

The Dow Jones industrial average (.DJI: ) was down 123.72
points, or 1.17 percent, at 10,496.44. The Standard & Poor’s
500 Index (.SPX: ) was down 14.37 points, or 1.27 percent, at
1,121.31. The Nasdaq Composite Index (.IXIC: ) was down 26.64
points, or 1.14 percent, at 2,320.23.

Shares of manufacturers tumbled, with Caterpillar (CAT.N: ),
down 2.5 percent at $63.23 and ranking among the heaviest
weights on the Dow.

Losses accelerated at midday as commodity prices extended
losses. Copper for July delivery (HGN0: ) plunged 6.5 percent on
the New York Mercantile Exchange’s COMEX division.

Shares of major U.S. home improvement chain Lowe’s Cos
(LOW.N: ) fell 3.2 percent to $25.23 afer giving a disappointing
profit forecast for the year. The Dow Jones U.S. home
construction index (.DJUSHB: ) slid 3.4 percent.

Growth Stocks

(Reporting by Caroline Valetkevitch; Additional reporting by
Richard Leong; Editing by Jan Paschal)

US STOCKS-Wall St drops 1 pct as commodity losses hit stocks