* Consumer confidence slumps to 2-yr low
* Home prices dip in June-Case-Shiller
* Weak demand in Italian bond auction
* Indexes down: Dow 0.6 pct, S&P 0.8 pct, Nasdaq 0.6 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to mid-morning trade)
By Angela Moon
NEW YORK, Aug 30 (Reuters) - U.S. stocks fell on Tuesday after data showed a sharp drop in consumer confidence, heightening worries about economic growth.
Financial stocks were among the top decliners, with the S&P financial index <.GSPF> down 1.4 percent.
Bank of America Corp
U.S. consumer confidence crumbled in August to its lowest level in more than two years as the fallout from political wrangling over a budget deal took a toll. For details, see [ID:nN9E7H701P]
"This isn't unexpected, given the last month, what with the lack of movement in Washington and the decline in stocks ... If we see positive action there, it will be a blip. Otherwise, I think this could be a trend," said Ron Kiddoo, chief investment officer at Cozad Asset Management in Champaign, Illinois.
The Dow Jones industrial average <.DJI> was down 72.47 points, or 0.63 percent, at 11,466.78. The Standard & Poor's 500 Index <.SPX> took off 9.03 points, or 0.75 percent, at 1,201.05. The Nasdaq Composite Index <.IXIC> slipped 15.86 points, or 0.62 percent, at 2,546.25.
In other data, U.S. single-family home prices fell slightly in June as the market continued to crawl along at depressed levels. [ID:nN23150778]
The Federal Open Market Committee releases minutes of its Aug. 9 at 2 p.m. EDT. (1800 GMT) Investors are seeking clues on the policy-setting panel's economic outlook.
Amid concerns about the debt crisis in Europe, Italy's bond sale drew relatively weak demand despite the European Central Bank buying Italian debt in recent weeks. [ID:nL5E7JU1AU] (Reporting by Angela Moon; editing by Jeffrey Benkoe)