US STOCKS-Wall St tumbles 1 pct on rising Korean tensions

                                
  
                                
 * N. Korea attack rattles global markets, sinks commods
                                
 * Q3 GDP growth revised up; Oct existing home sales fall
                                
 * Hewlett-Packard rises after results, outlook
                                
 * Indexes down: Dow 1.2 pct, S&P, Nasdaq 1.3 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates with housing data, adds analyst quote)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Nov 23 (Reuters) - U.S. stocks dropped more than
1 percent on Tuesday as rising tensions on the Korean peninsula
added to worries over how euro zone debt woes could affect
domestic markets.
                                
 North Korea fired scores of artillery shells at a South
Korean island, killing two soldiers and setting houses ablaze,
and South Korea returned fire. The iShares MSCI South Korea
Index Fund <EWY.P> fell 5.3 percent. For details
[ID:nL3E6MN0MA]
                                
 Global stock markets tumbled while the dollar climbed as
the geopolitical tensions and worries over Ireland's debt
problems drove investors to the relative safety of the U.S.
currency. Crude oil futures sank 1.4 percent.
                                
 "The prospect of armed conflict in Asia along with the debt
problems on Europe are creating a lot of negative sentiment,"
said Bruce McCain, chief investment strategist at Key Private
Bank in Cleveland.
                                
 The Dow Jones industrial average <.DJI> dropped 138.88
points, or 1.24 percent, at 11,039.70. The Standard & Poor's
500 Index <.SPX> was down 15.94 points, or 1.33 percent, at
1,181.90. The Nasdaq Composite Index <.IXIC> slid 32.63 points,
or 1.29 percent, at 2,499.39.
                                
 In the latest economic data, the U.S. economy grew faster
than previously estimated in the third quarter, but still not
enough to address stubbornly high unemployment. Also, existing
home sales fell by more than forecast in October after two
months of gains. [ID:nN22286327] and [ID:nN23130384]
                                
 "The GDP data shows that the economy is certainly still
growling, but the numbers weren't big enough to disrupt the
market's focus on overseas events." McCain said.
                                
 On the upside, Dow component Hewlett-Packard Co <HPQ.N>
rose 1.2 percent to $43.75 a day after it raised its outlook
and posted stronger-than-expected quarterly profit.
[ID:nN22292240]
                                
 The European Union urged Ireland to adopt an austerity
budget on time to unlock promised EU/IMF funding, while Irish
Prime Minister Brian Cowen rebuffed calls for a snap election
and insisted the budget would go ahead as planned on Dec. 7.
[ID:nLDE6AL2AG] and [ID:nTOPNOW6]
                                
 European stocks fell nearly 1 percent to a 3-week low, led
by declining banking shares. U.S.-listed shares of Bank of
Ireland <IRE.N> sank 23 percent to $1.71, while HSBC Holding
<HBC.N> fell 1.8 percent to $51.36.
                                
 Among South Korean companies, steelmaker Posco <PKX.N> sank
4.5 percent to $96.52.
                                
 Hormel Foods Corp <HRL.N> rose 3.4 percent to $49.54 after
it reported higher-than-expected profit, while Campbell Soup Co
<CPB.N> lost 0.7 percent to $34.57 after its earnings missed
expectations. [ID:nN23291995]
                                
 Minutes of the Federal Reserve's Nov. 3 Open Market
Committee meeting that included its decision for more
quantitative easing will be released at 2 p.m. EST (1900 GMT).
  (Editing by Jeffrey Benkoe)