* Investors' eyes on Fed meeting and data
* Research in Motion falls 5 pct after UBS downgrade
* Dow off 0.5 pct; S&P500 down 0.6 pct; Nasdaq off 0.6 pct
* For up-to-the-minute market news click []
(Updates to late afternoon, changes byline)
By Rodrigo Campos
NEW YORK, Aug 10 (Reuters) - U.S. stocks fell on Monday as
investors booked profits following a four-week rally that took
the broad S&P 500 index to a 10-month high on Friday.
The decline comes ahead of a plethora of economic data due
this week, including the Federal Reserve's statement on
interest rates and the state of the economy, as well as
government figures for monthly retail sales.
Materials companies' stocks took a big hit, with the S&P
materials index <.GSPM> down 1.7 percent. AK Steel Holding
<AKS.N> fell 4.4 percent to $20.37 while Nucor <NUE.N> lost
4.3 percent to $47.04.
"This drop is probably a lack of buying interest more than
selling pressure," said Keith Springer, president of Capital
Financial Advisory Services in Sacramento, California.
He said investors are hesitant to buy ahead of all the
economic data expected this week.
The Dow Jones industrial average <> dropped 50.56points, or 0.54 percent, to 9,319.51. The Standard & Poor's
500 Index <.SPX> fell 5.88 points, or 0.58 percent, to
1,004.60. The Nasdaq Composite Index <> lost 12.65
points, or 0.63 percent, to 1,987.60.
The U.S. dollar's gain against major currencies weighed on
commodity prices because it usually curbs investors' appetite
for raw materials denominated in the greenback. U.S. oil
futures <CLc1> settled at $70.60 a barrel, down 0.5 percent,
while New York copper slipped from a 10-month high.
The retail group was a weak performer in Monday's session,
with Best Buy <BBY.N> down 5.8 percent at $37.44 after Goldman
Sachs downgraded the electronics retailer to "neutral."
The S&P Retail index <.RLX> dropped 2.9 percent.
The CBOE Volatility Index <.VIX> rose 2.7 percent.
Earlier, it was up 3 percent -- its biggest percentage jump in
two weeks as investors positioned themselves for a
traditionally bumpy September. The widely watched VIX is a
30-day risk forecast priced off of S&P 500 index options.
"You are starting to see traders anticipate defensive
moves going into September, which is typically a cyclical
negative for the market," Springer said.
On Nasdaq, BlackBerry maker research in Motion <RIMM.O>
<RIM.TO> was one of the top drags, down 4.9 percent at $73.30.
The stock was down for a third-straight session after UBS
downgraded it to "neutral" from "buy" on concerns that Verizon
Wireless, one of RIM's largest customers, may launch an
iPhone. []
On the upside, McDonald's reported stronger-than-expected
July sales, sending the Dow component's stock up 1.8 percent
to $56.20 on the New York Stock Exchange. []
Fellow Dow component Merck & Co <MRK.N> rose 1.9 percent
to $30.66 after the drugmaker was reinstated by Goldman Sachs
with a "buy" rating, and added to its Americas conviction buy
list.
(Editing by Jan Paschal)
