* 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.
"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)
