* Investors fret about deepening global slump
* Commodity, energy, tech shares among top drags
* Alcoa slashes capacity as global demand wanes
* Dow down 2 pct, S&P 500 and Nasdaq down 2.2 pct
* For up-to-the-minute market news, please click on
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(Updates to close)
By Kristina Cooke
NEW YORK, Nov 11 (Reuters) - U.S. stocks fell on Tuesday
as faltering demand at aluminum maker Alcoa and a dismal
outlook from Tyco International showed the global economic
slowdown is deepening.
Signs of weakness in China's economy further fed worries
about the breadth of the slowdown, slashing investors'
appetite for risky assets.
Selling was widespread, with commodity-related shares
tumbling as resources ranging from oil to silver were stung by
fears that the economic gloom will curb demand and as the U.S.
dollar firmed.
"Reality is setting in that we are in a recession. It's
almost like an endless abyss for the market -- it's sell
first, ask questions later," said Ryan Detrick, technical
analyst at Schaeffer's Investment Research in Cincinnati,
Ohio.
Alcoa <AA.N> shares shed 7 percent after the company
slashed a further 350,000 tonnes of aluminum-making capacity
worldwide, blaming faltering global demand. For details, see
[].
Industrial conglomerates slid after Tyco International Ltd
<TYC.N> warned fiscal-year profit would be well below Wall
Street's forecasts due to the downturn and the stronger
dollar.
Adding to the sour mood, Starbucks Corp <SBUX.O> provided
more evidence that consumers are cutting back in a harsh
economic environment. The coffee chain operator's stock fell 2
percent after its profit and outlook disappointed investors
and it cut plans for to open new shops. [].
"All the different bailout plans have only given stocks
fleeting boosts and that is beginning to wear on people. And
for the consumer, Christmas is not going to be a 'feel good'
time of year at all," Detrick said.
The Dow Jones industrial average <> dropped 176.58
points, or 1.99 percent, to 8,693.96, while the Standard &
Poor's 500 Index <.SPX> shed 20.26 points, or 2.20 percent, to
898.95. The Nasdaq Composite Index <> slid 35.84 points,
or 2.22 percent, to 1,580.90.
Alcoa's shares dropped 7.1 percent to $10.94 on the New
York Stock Exchange, while Starbucks' shares lost 2.1 percent
to $9.99 on the Nasdaq.
Among industrial companies, Tyco's shares fell 14.2
percent to $21.74, while 3M's <MMM.N> shares were among the
biggest drags on the Dow, falling 4 percent to $62.38.
FLIP OPEN PANDORA'S BOX
Credit card company American Express Co <AXP.N> fell 6.6
percent to $22.40, a day after it said it won approval to
become a bank holding company, in a move that would give it
more access to government money.
General Motors <GM.N> slid for a fifth straight day, down
13.1 percent at $2.92 as investors worried about the chances
of the U.S. auto sector securing a desperately needed cash
infusion from the government.
"It's opening up Pandora's Box. American Express, they're
asking for money, GM is asking for money. People are starting
to realize this bailout is going to be much more expensive
than originally thought," Detrick said. "Everybody's asking
for a handout, but who is going to foot the bill?"
The market's slide puts it in a precarious position as
investors had hoped November would mark the start of a
sustained recovery after a disastrous October sent stocks to
their lowest in more than five years.
Technology stocks were also hard hit. Google <GOOG.O> slid
2.3 percent to $311.46 on Nasdaq after Goldman Sachs cut its
price target and fourth-quarter revenue view for the Internet
company.
In the latest sign of fallout from the economic upheaval,
Chinese import growth slowed in October and inflation fell to
a 17-month low as demand cooled. [].
Trading volumes were thin, with the bond market closed for
the Veterans Day holiday.
Volume was low on the New York Stock Exchange, with about
1.23 billion shares changing hands, down down sharply from
last year's estimated daily average of roughly 1.90 billion,
while on Nasdaq, about 1.93 billion shares traded, also far
below last year's daily average of 2.17 billion.
Declining stocks outnumbered advancing ones on the NYSE by
a ratio of slightly more than 4 to 1. On the Nasdaq, three
stocks fell for every one that rose.
(Editing by Jan Paschal)
