* N. Korea attack rattles global markets, sinks commods
* Q3 GDP growth revised up; Oct existing home sales fall
* Hewlett-Packard rises after results, outlook
* Indexes down: Dow 1.2 pct, S&P, Nasdaq 1.3 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates with housing data, adds analyst quote)
By Ryan Vlastelica
NEW YORK, Nov 23 (Reuters) - U.S. stocks dropped more than 1 percent on Tuesday as rising tensions on the Korean peninsula added to worries over how euro zone debt woes could affect domestic markets.
North Korea fired scores of artillery shells at a South
Korean island, killing two soldiers and setting houses ablaze,
and South Korea returned fire. The iShares MSCI South Korea
Index Fund
Global stock markets tumbled while the dollar climbed as the geopolitical tensions and worries over Ireland's debt problems drove investors to the relative safety of the U.S. currency. Crude oil futures sank 1.4 percent.
"The prospect of armed conflict in Asia along with the debt problems on Europe are creating a lot of negative sentiment," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
The Dow Jones industrial average <.DJI> dropped 138.88 points, or 1.24 percent, at 11,039.70. The Standard & Poor's 500 Index <.SPX> was down 15.94 points, or 1.33 percent, at 1,181.90. The Nasdaq Composite Index <.IXIC> slid 32.63 points, or 1.29 percent, at 2,499.39.
In the latest economic data, the U.S. economy grew faster than previously estimated in the third quarter, but still not enough to address stubbornly high unemployment. Also, existing home sales fell by more than forecast in October after two months of gains. [ID:nN22286327] and [ID:nN23130384]
"The GDP data shows that the economy is certainly still growling, but the numbers weren't big enough to disrupt the market's focus on overseas events." McCain said.
On the upside, Dow component Hewlett-Packard Co
The European Union urged Ireland to adopt an austerity budget on time to unlock promised EU/IMF funding, while Irish Prime Minister Brian Cowen rebuffed calls for a snap election and insisted the budget would go ahead as planned on Dec. 7. [ID:nLDE6AL2AG] and [ID:nTOPNOW6]
European stocks fell nearly 1 percent to a 3-week low, led
by declining banking shares. U.S.-listed shares of Bank of
Ireland
Among South Korean companies, steelmaker Posco
Hormel Foods Corp
Minutes of the Federal Reserve's Nov. 3 Open Market Committee meeting that included its decision for more quantitative easing will be released at 2 p.m. EST (1900 GMT). (Editing by Jeffrey Benkoe)