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US STOCKS-Wall St falls, weighed by energy stocks, Disney

Published 05/11/2011, 10:14 AM
Updated 05/11/2011, 10:16 AM
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* AIG, U.S. Treasury to sell $9 bln in AIG stock

* Disney falls, Macy's gains after results

* Dow off 0.5 pct, S&P down 0.4 pct, Nasdaq down 0.1 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to mid-morning trade)

By Rodrigo Campos

NEW YORK, May 11 (Reuters) - U.S. stocks fell on Wednesday after a three-day rally as Disney results weighed on the Dow industrials and a slide in crude prices hurt energy stocks.

Dow component Walt Disney Co tumbled 4.1 percent to $42.14 a day after its quarterly results missed expectations. For details, see [ID:nN10126729]

U.S. crude futures fell 2.2 percent to $101.60 per barrel, hurting energy shares. The S&P 500 energy sector <.GSPE> slumped 2 percent and was the top drag on the index.

"Disney earnings last night were below expectations," said Giri Cherukuri, head trader at OakBrook Investments in Lisle, Illinois.

"Oil prices are down and that is affecting energy stocks today," he said. "We're getting a pullback after three days of gains in the market."

The Dow Jones industrial average <.DJI> dropped 65.05 points, or 0.51 percent, to 12,695.31. The Standard & Poor's 500 Index <.SPX> fell 5.68 points, or 0.42 percent, to 1,351.48. The Nasdaq Composite Index <.IXIC> lost 2.29 points, or 0.08 percent, to 2,869.60.

Macy's Inc jumped 6.1 percent to $22.95 after its profit rose more than estimated. [ID:nN09240623]

American International Group Inc rose 3.5 percent to $30.62 after the insurer and the U.S. Treasury said they will sell nearly $9 billion in AIG stock, less than half of what was contemplated earlier this year. [ID:nN11182986]

The latest economic report from China showed industrial output growth eased in April, suggesting the world's second-biggest economy is cooling and reducing the need for more monetary policy tightening. But Chinese inflation remains high. [ID:nL3E7GB0H2]

In a day thin on U.S. economic indicators, the government said the trade deficit widened more than expected in March. Exports leapt to a new record, but imports rose nearly 5 percent as oil prices jumped. [ID:nN11188785] (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

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