RPT-US STOCKS-Markets decline as recovery hopes dented

                                
 (Repeats with no changes to headline or text)
                                
* Japan's economy shows growth, but recovery doubts linger
                                
* Lowe's Cos' shares drop on weaker outlook
                                
* Indexes off: Dow 1.8 pct, S&P 500 2.2 pct, Nasdaq 2.5 pct
                                
* For up-to-the-minute market news click [STXNEWS/US]
 (Updates to afternoon, changes byline)
                                
 By Caroline Valetkevitch
                                
 NEW YORK, Aug 17 (Reuters) - U.S. stocks fell on Monday,
putting major indexes on track for their worst day in seven
weeks, as weak data from Japan and a disappointing outlook from
retailer Lowe's Cos <LOW.N> dampened hopes about the economy's
growth.
                                
 Lowe's stock dropped 10 percent to $20.55 as the company
gave an outlook that fell short of Wall Street's estimates. The
second-largest home improvement retailer also said it was
slowing plans for expansion.
                                
 The results follow disappointing U.S. consumer sentiment
and retail sales data last week, adding to worries about weak
consumer spending.
                                
 Selling was broad-based, but shares sensitive to the
economy's cycles fell the most, including industrials <.GSPI>,
down 2.8 percent, and financials <.GSPF>, down 3.4 percent.
                                
 In Japan, while gross domestic product data showed the
economy pulled out of recession in the second quarter,
economists warned that exports could slow as the effect of
stimulus measures wears off. [ID:nT212505]
                                
 "The GDP number in Japan sort of got things started," said
said Stephen Massocca, managing director of Wedbush Morgan in
San Francisco.
                                
 "Also, people are looking at stocks and seeing they're very
expensive ... they're not being supported by the actual
fundamentals of the economy."
                                
  The S&P 500 is still up about 45 percent from its early
March lows.
                                
 The Dow Jones industrial average <.DJI> fell 155.83 points,
or 1.7 percent, to 9,165.87. The Standard & Poor's 500 Index
<.SPX> dropped 21.25 points, or 2.1 percent, to 982.94. The
Nasdaq Composite Index <.IXIC> lost 49.16 points, or 2.5
percent, to 1,936.36.
                                
 Stocks also sold off in Europe and Asia.
                                
 Shares of heavy equipment maker Caterpillar Inc <CAT.N>
fell 3.9 percent to $44.23.
                                
 Lowe's gave a third-quarter earnings outlook that was below
expectations, with Chief Executive Robert Niblock saying
consumers remain under pressure even though housing is showing
signs of bottoming out.[ID:nBNG149135]
                                
 Shares of rival Home Depot Inc <HD.N>, a Dow component,
dropped 3.5 percent to $26.20.
                                
 Offsetting some of the declines earlier was regional data
from the New York Federal Reserve that showed the state's
factory sector was better than expected in August.
[ID:nN17371906]
  (Editing by Padraic Cassidy)