* Euro off vs USD; stronger dollar hits commodity prices
* Health care in focus before vote, Aetna gives outlook
* Boeing accelerating production for two lines
* Dow off 0.5 pct; S&P off 0.6 pct; Nasdaq off 0.8 pct (Updates to late afternoon)
By Chuck Mikolajczak
NEW YORK, March 19 (Reuters) - U.S. stocks fell on Friday, interrupting the Dow's eight-session winning streak, as the dollar's climb hurt oil prices and dragged on energy stocks.
The euro fell to more than a two-week low against the greenback on revived worries about Greece's debt problems. Dollar-denominated commodities such as oil and gold fell as a stronger dollar makes them more expensive for holders of other currencies.
Regarding Greece and its huge debt burden, the European Union's monetary affairs chief urged the bloc's leaders to agree on a standby aid package for Greece next week. But investors fear German reluctance could hinder the effort. [
]"Between France, Germany, and the IMF -- they are playing chicken," said Peter Kenny, managing director of Knight Equity Markets in Jersey City, New Jersey.
"We can't seem to get rid of this thing, and the longer it hangs around, the greater the rush is going to be for the exit."
Energy stocks stumbled on the drop in commodity prices, with the S&P Energy Index <.GSPE> down 1.2 percent as U.S. crude oil futures <.CLc1> lost 1.9 percent to $80.64 a barrel. Dow component Exxon Mobil <XOM.N> fell 1 percent to $66.74.
But healthcare stocks rose ahead of an impending congressional vote to overhaul the U.S. healthcare system, with the Morgan Stanley Healthcare Payor index <.HMO> up 2.6 percent. Further boosting the sector was Aetna Inc <AET.N>, which gained 3.8 percent to $34.49 after it forecast first-quarter earnings above consensus. [
]The Dow Jones industrial average <
> dropped 52.30 points, or 0.49 percent, to 10,726.87. The Standard & Poor's 500 Index <.SPX> dropped 6.93 points, or 0.59 percent, to 1,158.91. The Nasdaq Composite Index < > dropped 19.67 points, or 0.82 percent, to 2,371.61.Boeing Co <BA.N> tacked on 1 percent to $71.56 after the Dow component said it will move up production for both its 777 and 747 widebody planes, citing increased demand. [
]3M Co <MMM.N>, which fell 2 percent to $81.97, was the top drag on the Dow as the diversified manufacturer erased gains made in Thursday's sessions, when it was one of the top gainers on the blue-chip index.
Weighing on the Nasdaq was Palm Inc <PALM.O>, which plunged 26.9 percent to $4.12 a day after it warned that quarterly revenues would be far below expectations as low demand for its smartphones left wireless carriers with excess inventory. [
]SunPower Corp <SPWRA.O> tumbled 15.3 percent to $18.67 a day after it gave a weaker-than-expected profit outlook for 2010, prompting a number of analysts to cut their price targets on the stock. [
]Electronics retailer Best Buy <BBY.N> climbed 1.6 percent to $41.10 after Goldman Sachs upgraded the stock to "buy," citing prospects for a better-than-expected 2010. [
]Volume has been thin during the week and volatility has dropped considerably. The CBOE Volatility Index <.VIX> is down roughly 5 percent this week and hit its lowest mark since May 2008.
Friday marks the second day of a convergence known as quadruple witching, when four types of options and futures contracts expire, possibly triggering volatility and higher volumes. (Reporting by Chuck Mikolajczak; Editing by Jan Paschal)