US STOCKS-S&P 500 hits 10-week low amid talk of new stimulus

NEW YORK, July 7 (Reuters) - U.S. stocks fell to their lowest level in more than two months on Tuesday as talk of a second government stimulus plan added to concerns that the economy is not recovering as fast as hoped, ahead of what is forecast to be a weak earnings season.

* The Dow Jones industrial average .DJI dropped 161.42 points, or 1.94 percent, to 8,163.45. The Standard & Poor's 500 Index .SPX fell 17.70 points, or 1.97 percent, to 881.02. The Nasdaq Composite Index .IXIC slid 41.23 points, or 2.31 percent, to 1,746.17. (Reporting by Chuck Mikolajczak; Editing by Leslie Adler)