* Energy shares fall alongside oil prices
* Investors wary of possible correction after run-up
* Dow off 1.3 pct, S&P off 1.7 pct, Nasdaq off 2 pct
* For up-to-the-minute market news click []
(Updates to early morning)
By Leah Schnurr
NEW YORK, June 22 (Reuters) - U.S. stocks slid on Monday as
investors questioned the strength of an economic recovery,
while energy shares were dragged down by lower oil prices.
After a sharp three-month rally, indexes have eased as
traders increasingly questioned if stocks are due for a
correction. Worries that the economic recovery could be tepid
have wilted the optimism that drove the S&P 500 up by as much
as 40 percent from the 12-year low in March.
Exxon Mobil Corp <XOM.N> and Chevron Corp <CVX.N> were the
biggest drags on the Dow as the price of oil <CLc1> fell below
$68 a barrel on the stronger dollar. Exxon was down 2 percent
to $69.61, while Chevron fell 2.5 percent to $66.34.
While higher oil prices can be a boon for energy companies,
rising prices can force consumers to further curb spending,
potentially stalling any budding stabilization. Exxon was down
2.5 percent at $69.30, and Chevron lost 2.9 percent to $66.11.
"While the worst might be over, it doesn't mean we're off
to strong growth in any of the major economies globally," said
Alan Lancz, president of Alan B. Lancz & Associates Inc in
Toledo, Ohio.
The World Bank said prospects for the global economy remain
"unusually uncertain" as it cut 2009 growth forecasts for most
economies. (For details, see [])
The Dow Jones industrial average <> fell 109.66 points,
or 1.28 percent, to 8,430.07. The Standard & Poor's 500 Index
<.SPX> gave up 15.93 points, or 1.73 percent, at 905.30. The
Nasdaq Composite Index <> lost 36.54 points, or 2 percent,
to 1,790.93.
The S&P 500 is still up nearly 34 percent from the March
trough.
Walgreen Co <WAG.N> fell 4.1 percent to $30.14 after the
big drugstore chain posted slightly lower third-quarter profit
as shoppers stuck to the necessities. [] In the
same sector, CVS Caremark Corp <CVX.N> slid 2.5 percent to
$66.34.
On the Nasdaq, Gilead Sciences Inc <GILD.O> was down 2.1
percent at $46.03 after Morgan Stanley cut its price target on
the company's stock to $59 from $62.
Apple Inc <AAPL.O> swung between gains and losses and were
off 1 percent to $138.13. Apple said it sold more than 1
million units of its newest iPhone in the first three days of
the launch. []
But over the weekend it was reported Apple Chief Executive
Steve Jobs had a liver transplant about two months ago. Jobs is
expected to return to work later this month.
Investors are also cautious ahead of a Federal Reserve
meeting that starts on Tuesday, bracing for Fed guidance on
growth and any hints on expanding the central bank's $300
billion program of Treasuries purchases.
(Reporting by Leah Schnurr; editing by Jeffrey Benkoe)
