US STOCKS-Wall St down on Goldman probe, GDP data

                                
   * Economy grew at 3.2 pct pace in Q1, less than expected
                                
 * U.S. starts criminal probe into Goldman-source
                                
 * Indexes down: Dow 0.2 pct, S&P 0.4 pct, Nasdaq 0.5 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates with Chicago PMI and sentiment data)
                                
 By Ryan Vlastelica
                                
 NEW YORK, April 30 (Reuters) - U.S. stocks fell on Friday
as shares of Goldman Sachs tumbled on reports of a federal
probe into the Wall Street powerhouse and after first-quarter
gross domestic product came in weaker than expected.
                                
 The S&P financial index lost 1.3 percent, with Goldman
<GS.N> down 7.6 percent to $148.12. A federal investigation
raised the possibility of criminal charges less than two weeks
after Goldman was accused of civil fraud. Bank of
America-Merrill Lynch downgraded the stock to "neutral." For
details, see [ID:nLDE63T021]
                                
 "The Goldman news could lead investors to believe that
there will be more intensive regulation than before, which
could put a bit of a dampening effect on financials in
general," said Michael Sheldon, chief market strategist, RDM
Financial, Westport, Connecticut.
                                
 A multibillion-euro aid package for debt-laden Greece will
be hammered out within days and could keep a sovereign debt
crisis from spreading, a top European Commission official said.
Fears over a debt default have weighed on equities in recent
weeks. [ID:nTOE63T03Y]
                                
 Gross domestic product expanded at a 3.2 percent rate in
the quarter, the Commerce Department said in its first
estimate, below the 3.4 percent forecast of analysts. For
details, see [ID:nN2926503]
                                
 The Dow Jones industrial average <.DJI> was down 44.89
points, or 0.40 percent, at 11,122.43. The Standard & Poor's
500 Index <.SPX> was down 8.42 points, or 0.70 percent, at
1,198.36. The Nasdaq Composite Index <.IXIC> was down 17.61
points, or 0.70 percent, at 2,494.31.
                                
 Losses in the Dow were limited after component Chevron Corp
<CVX.N> rose 0.1 pct to $82.33 as it reported a sharp increase
in quarterly profit. [ID:nN30117765]
                                
 Both Coventry Health Care Inc <CVH.N> and Newell Rubbermaid
Inc <NWL.N> posted quarterly earnings that beat expectations
and raised their outlooks. Coventry fell 1.9 percent to $24.42
while Newell advanced 3.2 percent to $17.50. [ID:nN30240605]
and [ID:nN30245864]
                                
 "Chevron's revenue looked a little light, but in general
this has been an extremely strong season for earnings," Sheldon
said.
                                
 UAL Corp <UAUA.O> gained 4.2 percent to $22.37, while
Continental Airlines Inc <CAL.N> added 1.5 percent to $23.02.
UAL's United Airlines and Continental have agreed to a deal to
create the world's largest carrier, a source said.
[ID:nN30176124]
                                
 In the latest economic data. U.S. business activity
expanded more than expected in April, with the Institute for
Supply Management-Chicago business barometer jumping to 63.8 in
April, the highest since April 2005. [ID:nN30178171]
                                
 Separately, U.S. consumer sentiment fell in April from the
month before, but were better than expectations as consumers
saw the economic recovery well under way but painfully slow.
[ID:nN30177358]
  (Editing by Jeffrey Benkoe)