US STOCKS-Wall St falls in stimulus rethink, materials weigh

* Materials, energy shares weigh as commodities drop

* Broadcom shares jump 8 percent, help lift Nasdaq

* Indexes off: Dow 1.2 pct, S&P 1 pct, Nasdaq 0.6 pct

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

By Leah Schnurr

NEW YORK, Oct 27 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) fell on Wednesday
as investors reined in expectations of how aggressively the
U.S. Federal Reserve may move to stimulate the economy.

The doubts strengthened the U.S. dollar and pressured
commodity prices, which in turn hit materials and energy
stocks. Chevron Corp (CVX.N: ) and Exxon Mobil Corp (XOM.N: ) were
the biggest weights on the Dow, down 1.8 percent at $83.59 and
1.7 percent at $65.42, respectively.

Expectations of large-scale U.S. Treasury bond purchases by
the Fed have fueled market gains as investors bet more
quantitative easing will invigorate an economic recovery and
lift asset prices. For details, see [ID:nN25168493]

But the Wall Street Journal reported the central bank is
likely next week to unveil a program of purchases worth a few
hundred billion dollars over several months, and wants to avoid
a “shock and awe” approach. [ID:nTOE69Q02H]

The market has priced in expectations of an initial
commitment to buy at least $500 billion in Treasury debt over
five months, said Jeffrey Friedman, senior market strategist at
Lind-Waldock in Chicago, and a potentially different scenario
came as a disappointment to the market.

Overall, “risk is still on the table. We’re still going to
print money, but at what rate we don’t know yet,” said
Friedman.

The Dow Jones industrial average (.DJI: ) dropped 135.51
points, or 1.21 percent, to 11,033.95. The Standard & Poor’s
500 Index (.SPX: ) fell dropped 12.36 points, or 1.04 percent, to
1,173.28. The Nasdaq Composite Index (.IXIC: ) was off dropped
14.42 points, or 0.58 percent, to 2,482.87.

The Nasdaq fared better than the other two indexes as
Broadcom Inc (BRCM.O: ) jumped 8 percent to $40.19. The maker of
chips for gadgets such as smartphones unexpectedly forecast a
potential rise in fourth-quarter revenue. [ID:nN26132733]

Also on the Nasdaq, Comcast Corp (CMCSA.O: ) gained 2.1
percent to $20.05 after earnings and revenue came in better
than estimated. [ID:nN27204585]

The day’s economic data was mixed, with sales of new U.S.
single-family homes rising more than forecast in September, but
demand for long-lasting U.S. manufactured goods, excluding
aircraft, unexpectedly falling in the same month.
[ID:nN27216698]
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St falls in stimulus rethink, materials weigh