* U.S. should plan for more fiscal stimulus-Obama adviser
* Credit card delinquency soars, adding to worry over debt
* Indexes down: Dow 1.0 pct; S&P 0.9 pct; Nasdaq 1.0 pct
* For up-to-the-minute market news click []
(Updates prices, adds AmEx, Intel shares, context)
By Rodrigo Campos
NEW YORK, July 7 (Reuters) - U.S. stocks fell on Tuesday as
investors turned cautious ahead of earnings season, and talk of
a second stimulus package underscored worries about the U.S.
economic recovery.
Signaling the economy's difficulty in rebounding from a
deep recession, a member of the Obama administration's economic
advisory panel said the United States should plan to possibly
provide a second round of stimulus funds to prop up the
economy. For details, see []
"Talk of a new stimulus plan is actually a confidence
killer," said Joseph Battipaglia, market strategist at Stifel
Nicolaus in Yardley, Pennsylvania. "That would mean we've added
a trillion dollars to debt without anything to show for it."
Investor concerns over mounting debt was also underpinned
by a report showing cash-strapped consumers fell behind on
their credit card bills in record numbers in the first quarter.
[]
Shares of credit card company American Express Co <AXP.N>
shed 1.7 percent at $23.11 and the S&P Consumer Finance index
<.GSPCFI> fell more than 3 percent.
In the broader market energy stocks were among the biggest
drags, along with other economically sensitive sectors like
basic materials and industrials. Healthcare, a defensive play,
was the only notable S&P sector with gains so far in the
session.
The Dow Jones industrial average <> fell 83.13 points,
or 1.00 percent, to 8,241.74. The Standard & Poor's 500 Index
<.SPX> lost 8.01 points, or 0.89 percent, to 890.71. The Nasdaq
Composite Index <> dropped 18.24 points, or 1.02 percent,
to 1,769.16.
Investors also have their eyes set on the quarterly
earnings season that gets underway this week, with Alcoa Inc
<AA.N> set to report on Wednesday. Alcoa, a Dow component, is
expected to post a third consecutive quarterly loss. For an
Alcoa earnings preview, see []
Stifel's Battipaglia said earnings are expected to
disappoint. "The anticipation is that Alcoa's report will be
even worse than expected," he said.
"The expectation of a speedy recovery is starting to slow
because there is no evidence to support it."
The loss of confidence in the economic recovery has sent
oil prices tumbling. New York crude <CLc1> fell close to 2
percent and its five-session slide has pressured energy stocks,
a large sector of the S&P 500.
Oil services company Schlumberger Ltd <SLB.N> fell 2.5
percent to $50.17 while blue-chip Exxon Mobil <XOM.N> lost 1.3
percent to $67.22.
The S&P energy sector <.GSPE> index lost 1.6 percent.
On the upside, shares of chip maker Intel Corp <INTC.O>
rose 1.3 percent to $16.75 after Banc of America
Securities-Merrill Lynch upgraded the U.S. semiconductor
industry and five stocks in the sector, including Intel, saying
recent data suggested emerging signs of a turn in end demand.
[]
But the PHLX semiconductor index <.SOXX> shed 0.4 percent.
The broad S&P 500 index rallied about 40 percent from
12-year lows hit in early March on expectations of a speedy
economic recovery. But the rally wilted in the last month, as
investors sought stronger evidence that conditions were
improving.
(Editing by Padraic Cassidy)
