US STOCKS-Wall St falls as debt, economy worries weigh

* US Senate expected to vote on debt measure shortly

* Pfizer, ADM fall after reporting results

* Dow off 0.8 pct, S&P off 1.1 pct, Nasdaq 0.9 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to late morning, changes byline)

By Caroline Valetkevitch

NEW YORK, Aug 2 (Reuters) - U.S. stocks declined on
Tuesday, putting the S&P 500 on track for its longest down
streak since October 2008, on worries over the United States'
debt and economic outlook.

Investors feared a possible downgrade of U.S. credit
despite passage by the U.S. House of Representatives Monday of
a last-minute compromise to raise the U.S. debt ceiling and
avert a U.S. debt default. For details, see [ID:nN1E77107D]
[ID:nUSBUDGET]

The deliberations have taken a toll on stocks. The S&P 500
is down for its seventh straight session. Last week, the market
suffered its worst week in a year.

Even with the deal, analysts say it is possible the United
States top credit rating could still be cut.

In the latest economic data, U.S. consumer spending fell
unexpectedly in June to post the first decline in nearly two
years as incomes barely rose, the government reported.
[ID:nN1E7710A7]

Among the day's weakest sectors was consumer
discretionaries, with the S&P sector index .GSPD down 1.6
percent.

A weak reading on manufacturing on Monday underscored
growing concerns about the economy's strength.

"I think people are worried about a double-dip recession
and the softening economic statistics," said Jeffrey Saut,
Raymond James Financial chief investment strategist, in St.
Petersburg, Florida. But he said, "it's not the snake you see
that bites you, and these figures are so well advertised."

Saut sees the market bottoming in the weeks ahead,
especially if the S&P 500 trades between 1,220 and 1,250.

The Dow Jones industrial average .DJI was down 98.61
points, or 0.81 percent, at 12,033.88. The Standard & Poor's
500 Index .SPX was down 13.48 points, or 1.05 percent, at
1,273.46. The Nasdaq Composite Index .IXIC was down 22.50
points, or 0.82 percent, at 2,722.11.

European debt problems returned to the forefront after
French bank BNP Paribas SA (BNPP.PA) took a $768.3 million
write-down linked to Greece's debt woes.
(Additional reporting by Ryan Vlastelica; Editing by Kenneth
Barry)