* Japan economy grows again, but concerns over recovery
* New York State manufacturing data better-than-expected
* Indexes off: S&P 2.2 pct, Dow 1.9 pct, Nasdaq 2.2 pct
* For up-to-the-minute market news click []
(Updates to mid-morning )
By Edward Krudy
NEW YORK, Aug. 17 (Reuters) - U.S. stocks fell broadly on
Monday as ongoing concerns about the speed of a global economic
recovery were compounded by data from Japan, which showed that
while the world's No.2 economy returned to growth, the recovery
may be shaky.
The near-50 percent run-up in U.S. stock prices, fueled by
hopes of a quick economic turnaround and better-than-expected
corporate earnings, has led to concerns the market is
over-extended. Disappointing retail sales and consumer
sentiment data last week added to these concerns.
The equity sell-off in the United States looked to be a
rerun of selling in Asia and Europe, where key indexes hit
fresh lows. Selling on Wall Street was dominated by banks and
commodity-related stocks, which are most sensitive to fears of
economic weakness.
Below-par results from the second-biggest U.S. home
improvement retailer, Lowe's Cos Inc <LOW.N>, highlighted the
fragile state of the consumer. The company missed estimates and
said 2009 sales would be down about 3 percent. The shares slid
9.4 percent.
Although Japan's data showed its economy pulled out of its
worst recession for 60 years and growth was in line with
forecasts, economists were wary as exports, the biggest
contributor to April-June growth, may slow as the effect of
stimulus measures wears off. []
"You had some portion of the marketplace that was looking
for selling opportunities after a big rally, and we've gotten a
couple of good reasons here globally to execute on that
thought," said Craig Peckham, equity trading strategist at
Jefferies & Co in New York.
The Dow Jones industrial average <> dropped 167.85
points, or 1.80 percent, to 9,148.41. The Standard & Poor's 500
Index <.SPX> dropped 21.11 points, or 2.10 percent, to 982.98.
The Nasdaq Composite Index <> dropped 42.93 points, or
2.16 percent, to 1,942.59.
A much better-than-expected survey of U.S. regional
manufacturing did little to cheer stock investors, concerned
that the rally since early March has been overdone.
The New York Fed's survey of regional manufacturing came in
at 12.08 in August, above the 3.00 consensus, and showed a
return to growth in the sector for the first time since April
2008.
(Editing by Padraic Cassidy)
