* Optimism over China stimulus plan fades
* Worries about GM's future hurts sentiment, stock plunges
* McDonald's jumps after sales top expectations
* Dow off 0.5 pct, S&P 500 off 0.9 pct, Nasdaq off 1.2 pct
(Updates to midday)
By Ellis Mnyandu
NEW YORK, Nov 10 (Reuters) - U.S. stocks dipped on Monday
as investors expressed doubts about whether China's
deep-pocketed stimulus plan would avert a global economic slump
and shares of General Motors <GM.N> fell to 62-year lows on
worries about the carmaker's dwindling cash.
A slide of more than 20 percent in the shares of GM, a Dow
component, offset a gain of more than 2 percent in the shares
of McDonald's Corp <MCD.N> , whose October same-store sales
beat estimates.
The slide in GM shares followed Deutsche Bank's "sell"
recommendation and negative comments from other brokerages that
the auto maker and its rivals are burning through cash fast.
Stocks worldwide initially rose on news that China had
approved a $586 billion stimulus plan that could mean stronger
demand for world markets.
But the initial euphoria wore off, and the market headed
lower, with key sectors, including energy and big manufacturers
giving up earlier gains.
"There are still tons of bad news out there and that's not
going to be solved by this Chinese stimulus plan," said Joe
Saluzzi, co-manager of trading at Themis Trading in Chatham,
New Jersey. "If the Chinese have got to put up a stimulus
package, it tells me they've got issues."
The Dow Jones industrial average <> dipped 47.15
points, or 0.53 percent, to 8,896.66. The Standard & Poor's
500 Index <.SPX> shed 9.00 points, or 0.97 percent, to 921.99.
The Nasdaq Composite Index <> fell 19.31 points, or 1.17
percent, to 1,628.09.
China's economic stimulus involves new government spending
between now and 2010 and would focus largely on infrastructure
and social projects. For details, see [].
GM shares slid to $3.34 on the New York Stock Exchange,
dragging along rival Ford <F.N>, whose shares declined almost 3
percent to $1.96. On Friday both companies posted
wider-than-expected quarterly losses.
On Nasdaq, shares of Apple <AAPL.O> declined 2.5 percent to
$95.79, making the technology bellwether a top drag.
Shares of Goldman Sachs <GS.N> declined 9.5 percent to
$70.10 after Barclays forecast the U.S. bank to post a
fourth-quarter loss. []
Besides the woes at GM, a major electronic retailer,
Circuit City <CC.N>, was forced into bankruptcy on Monday just
weeks before the holiday shopping season.
Package delivery company DHL said it was ceasing U.S.
domestic air and ground services, resulting in 9,500 job
losses. DHL is a unit of Germany's Deutsche Post AG <DPWGn.DE>.
[]
Shares of DHL rivals rose, with UPS <UPS.N> 3.5 percent to
$53.75, and FedEx Corp <FDX.N> up 2.7 percent to $66.31.
(Editing by Kenneth Barry)
