US STOCKS-Wall Street edges lower; materials, energy weigh

                                
   * US consumer spending rises more than expected in May
                                
 * Energy, materials weigh as oil futures fall
                                
 * Stocks down: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.2 pct
                                
  * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to midmorning with prices, quote)
                                
 By Angela Moon
                                
 NEW YORK, June 28 (Reuters) - U.S. stocks fell on Monday as
better-than-expected data on consumer spending failed to ease
renewed caution about the economy.
                                
 Spending edged up 0.2 percent in May after being flat in
April, even as savings touched their highest level in eight
months, the Commerce Department said. For details, see
[ID:nN28253397]
                                
 "There is the increased level of caution, fear. Investors
need see some solid evidence that there is an improvement
coming, especially with the continuing European sovereign debt
concerns," said Tim Ghriskey, chief investment officer of
Solaris Asset Management in New York. The key monthly jobs
report is due out on Friday.
                                
 Materials and energy stocks were among the top decliners on
the S&P 500 as crude oil futures <CLc1> fell 1 percent on
worries about the impact on supply from tropical storm Alex.
                                
 The S&P energy index <.GSPE> was down 0.6 percent, and the
S&P materials index <.GSPM> was off 1 percent.
                                
 The Dow Jones industrial average <.DJI> was down 11.41
points, or 0.11 percent, at 10,132.40. The Standard & Poor's
500 Index <.SPX> was down 1.82 points, or 0.17 percent, at
1,074.94. The Nasdaq Composite Index <.IXIC> was down 5.88
points, or 0.26 percent, at 2,217.60.
                                
 At the Group of 20 nations summit in Toronto over the
weekend, leaders agreed to take divergent paths as they seek to
trim budget deficits while ensuring the global economic
recovery remained intact.
                                
 The G20 leaders also softened a 2012 deadline for banks to
build up higher levels of capital and liquidity.
[ID:nN27241260] Still, the G20 messages were not enough to
boost confidence of investors.
                                
 "The headlines read well from the G20, and it is certainly
a step in the right direction. But it is basically a goodwill
event, and we are not going to see a major impact (on stocks),"
said Peter Cardillo, chief market economics at Avalon Partners
in New York.
                                
 BP <BP.N> U.S.-listed shares rose 2.5 percent to $27.69
after the beleaguered oil giant was forced to defend its chief
executive on Monday. Russia's deputy prime minister said he
expected the CEO, Tony Hayward, to resign soon.
  (Reporting by Angela Moon; editing by Jeffrey Benkoe)