US STOCKS-Wall St set to end 5 winning wks on commods slide

                                

                                
 * China tightening fears sends local stocks down 5 pct
                                
 * Commodity-related stocks fall premarket
                                
 * Indexes off: S&P 0.8 pct, Dow 0.5 pct, Nasdaq 0.6 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates market activity)
                                
 By Edward Krudy
                                
 NEW YORK, Nov 12 (Reuters) - U.S. stocks dropped on Friday
and were on course to end a five-week winning streak as
expectations of a China interest rate hike hit commodity
prices, weighing on natural resource stocks.
                                
 The Shanghai Composite Index <.SSEC> closed down 5.2
percent for its biggest percentage loss in over a year, while
global commodities tumbled on speculation China's central bank
is set to raise interest rates to tackle inflation. For
details, see [ID:nTOE6AB04G]
                                
 Commodities fell broadly, with crude oil <CLc1> down 2.4
percent below $86, while copper <CMCU3> fell 1.7 percent. That
weighed on cyclical stocks, with aluminum producer Alcoa Inc
<AA.N> off nearly 2 percent to $13.55 and Freeport-McMoRan
Copper & Gold Inc <FCX.N> down 2.7 percent to $105.08.
                                
 "Right now the headwinds are slowly creeping back into the
market," said Ryan Larson, head of equity trading at RBC Global
Asset Management in Chicago. "(There's) an old saying that the
market continues to walk a wall of worry. We're seeing that
wall build, and build right now."
                                
 The Dow Jones industrial average <.DJI> dropped 59.38
points, or 0.53 percent, to 11,223.72. The Standard & Poor's
500 Index <.SPX> lost 9.51 points, or 0.78 percent, to
1,204.03. The Nasdaq Composite Index <.IXIC> fell 16.39 points,
or 0.64 percent, to 2,539.13.
                                
 Stocks have stalled after a two-month rally before the
Federal Reserve's bond buying plan and reached a climax last
week when the Dow and Nasdaq rose to levels not seen since the
collapse of Lehman Brothers more than two years ago.
                                
 Worries that Ireland may default on its debt as well as
declines in commodity prices and an unexpectedly weak outlook
from Cisco Systems Inc <CSCO.O> helped to cloud the market
outlook, though some investors said the underlying trend is
strong.
                                
 "The market is pretty healthy. The news today is just
noise," said Mike Morcos, senior money manager at Old Second
Wealth Management in Aurora, Illinois. "We've had a big run, so
we're getting a bit of a pullback."
                                
 Dow component Boeing Co <BA.N> fell 2.4 percent to $63.83
after Sanford C. Bernstein downgraded the stock on concerns
about more potential delays for the high-profile 787
Dreamliner. [ID:nSGE6AB0FN]
                                
 Helping the Dow, Intel Corp <INTC.O> rose 2.1 percent to
$21.65 after the chipmaker announced a 15 percent increase in
its quarterly dividend. [ID:nN12118645]
                                
 In other corporate news, Nvidia Corp <NVDA.O> jumped 7.3
percent to $13.53 after the graphics chipmaker forecast higher
sales for the current quarter and had a rosy outlook for its
mobile business. [ID:nN1146797]
                                
 D.R. Horton Inc <DHI.N> fell 2.5 percent to $11.86 after
the biggest U.S. homebuilder said orders fell, even as it
reported a narrower quarterly loss. [ID:nN12104570]
                                
 J.C. Penney Co Inc <JCP.N> was off 1.6 percent to $31.71
after the department store retailer said discounting boosted
quarterly sales but ate into margins. [ID:nN04203963]
  (Reporting by Edward Krudy; additional reporting by Ryan
 Vlastelica; editing by Jeffrey Benkoe)