US STOCKS-Wall St in biggest fall in a month on jobs, tech

                                
 * Intel's revenue warning drags tech; stock off 5.3 pct
                                
 * ADP jobs data adds to recession worry
                                
 * Energy shares tumble after crude oil plunges 12 pct
                                
 * Dow off 2.7 pct, S&P 500 off 3 pct, Nasdaq off 3.2 pct
                                
 * For up to the minute market news, click [STXNEWS/US]
 (Adds context to Dow)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Jan 7 (Reuters) - U.S. stocks suffered their
worst decline in more than a month on Wednesday after a grim
private-sector jobs report coupled with a revenue warning from
top chip maker Intel Corp <INTC.O> revived deep concerns about
the economy.
                                
 Energy shares slid after data showed an abundance of crude
oil inventory in the United States, the world's largest energy
consumer, with demand eroded by the economic slowdown. U.S.
crude futures <CLc1> slumped more than 12 percent.
                                
 Two days ahead of the U.S. government's key nonfarm
payrolls report for December, a worse-than-expected
private-sector jobs report highlighted the challenges facing
President-elect Barack Obama as he makes plans for a large
economic stimulus package.
                                
 Recession fears were heightened after Intel said its
revenue for the fourth quarter would not meet the lowered
forecast it had given in November, citing weakening demand for
personal computers.
                                
 Intel, the world's biggest maker of the central processing
units at the heart of every PC and a technology bellwether, was
among the main laggards on the Nasdaq. For details, see
[ID:nN07475140]
                                
 The Intel news compounded negative sentiment from aluminum
producer Alcoa's <AA.N> announcement late Tuesday it would cut
more than 15,000 jobs, halve capital spending and sell
businesses to weather the global downturn. [ID:nN06444898]
                                
 "Reality set back in," said Fred Dickson, market strategist
and director of retail research at D.A. Davidson & Co in Lake
Oswego, Oregon. "Investors were expecting bad news on the
earnings front and the Alcoa news combined with Intel reminded
investors how bad things really are".
                                
 The Dow Jones industrial average <.DJI> fell 244.68 points,
or 2.71 percent, to 8,770.42. The Standard & Poor's 500 Index
<.SPX> dropped 28.00 points, or 3 percent, to 906.70. The
Nasdaq Composite Index <.IXIC> tumbled 53.32 points, or 3.23
percent, at 1,599.06.
                                
 It was the largest drop for the Dow since Dec. 1, and the
index is now down 31.1 percent from 52 weeks ago.
                                
 Chevron <CVX.N> and ExxonMobil <XOM.N> were among the
primary weights on the Dow, while the S&P index of energy
stocks <.GSPE> dipped 3.8 percent. Chevron lost 4.4 percent to
$73.96, while Exxon shed 2.6 percent to $78.25.
                                
 After five days of gains, technology shares were among the
biggest weight on the market after Intel's warning, indicating
the heavy toll from the economic slump on both business and
consumer spending.
                                
 Intel shares fell 6.1 percent to $14.44 on the Nasdaq,
while Apple <AAPL.O> stock lost 2.2 percent to $91.01 and
Microsoft <MSFT.O> stumbled 6 percent to $19.51.
                                
 The S&P 500 index of technology shares <.GSPT> fell 3.7
percent and the semiconductor index <.SOXX> was down 4.9
percent.
                                
 Further evidence of the spreading recession came from media
company Time Warner Inc <TWX.N>, which forecast a
fourth-quarter loss, sending its stock down 6.3 percent to
$10.29. [ID:nN07469412].
                                
 According to ADP, a private employment service, U.S.
private employers shed 693,000 jobs in December, up sharply
from the revised 476,000 jobs lost in November and far more
than economists estimated. [ID:nN07470568].
                                
 Among financials, Morgan Stanley <MS.N> fell 7.6 percent to
$18.10 and Goldman Sachs <GS.N> dropped 4.8 percent to $84.50
after Sanford Bernstein cut its 2009 earnings forecast for both
firms. The S&P Financial index <.GSPF>  shed 5.1 percent.
                                
 Obama, set to be sworn in on Jan. 20, has proposed the
largest U.S. infrastructure investment since the 1950s and
massive tax cuts for consumers and businesses.
                                
 The new U.S. Congress began work to pass a stimulus
package. Obama expects to inherit a budget deficit approaching
$1 trillion and says his administration will have to make tough
budget choices.
                                
 The benchmark S&P 500 <.SPX> has risen 20 percent since its
Nov. 21 low.
                                
 Volume was light on the New York Stock Exchange, where
about 1.17 billion shares changed hands, below last year's
estimated daily average of 1.49 billion. On the Nasdaq, about
2.03 billion shares traded.
                                
 Decliners outnumbered advancers on the NYSE by a ratio of
about 4 to 1, while on the Nasdaq about three stocks fell for
every one that rose.
 (Editing by Leslie Adler)