* Ireland gets bailout, investor jitters remain
* Euro hovers near two-month lows versus the U.S. dollar
* Retailers off after two-week climb
* Indexes down: Dow 1.2 pct; S&P 1 pct, Nasdaq 1.3 pct
* For up-to-the-minute market news see []
(Updates to mid-morning trading)
By Rodrigo Campos
NEW YORK, Nov 29 (Reuters) - U.S. stocks fell more than 1
percent on Monday on lingering worries about Europe's ability
to contain a credit crisis despite a weekend bailout agreement
for Ireland.
The euro fell to more than two-month lows against the U.S.
dollar, hurting commodity prices and shares in the materials
and energy sectors.
European Union finance ministers endorsed an 85 billion
euro loan package to help Ireland bridge its deficit.
Nervousness that the credit crisis could spread to other euro
zone members has weighed on global stocks in recent weeks. For
details, see []
Anxiety grew, with the CBOE Volatility index <.VIX>, Wall
Street's so-called fear gauge, hitting its highest level since
early October.
Adding to the fundamental weakness, the S&P 500 failed to
hold a technical support as it briefly traded below its 50-day
moving average for the first time since early September.
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"This seems to be more of a macro selloff based on fears of
what's happening in Europe," said Angel Mata, managing director
of listed equity trading at Stifel Nicolaus Capital Markets in
Baltimore.
"A lot of people don't understand the ramifications here.
If Europe is having these systemic problems, it brings the
question of whether our economic recovery is put on hold."
The Dow Jones industrial average <> dropped 133.73
points, or 1.21 percent, to 10,958.27. The Standard & Poor's
500 <.SPX> lost 12.16 points, or 1.02 percent, to 1,177.24. The
Nasdaq Composite <> fell 32.11 points, or 1.27 percent, to
2,502.45.
The S&P materials index <.GSPM> declined 1.3 percent, while
the energy sector <.GSPE> was off 0.8 percent.
U.S. consumers appeared to be spending again as about 212
million shoppers hit stores between the U.S. Thanksgiving Day
holiday on Thursday and Sunday, an increase of 8.7 percent from
2009, according to a private survey. []
Still, the S&P retail index <.RLX> fell 1.2 percent after
climbing 3.5 percent in the last two weeks.
Stifel's Mata said retail stocks had moved up in
anticipation of positive weekend sales, and a selloff was
expected.
Online retailer Amazon.com Inc <AMZN.O> rose 1.1 percent to
$179.21 in hopes of strong sales on so-called Cyber Monday, a
day of steep discounts for online shoppers. FedEx Corp <FDX.N>
added 3 percent to $90.05.
(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)
