US STOCKS-Dow falls 1 pct on oil rise, financial worries

(Updates to show the Dow falling 1 percent)

NEW YORK, May 9 (Reuters) - The Dow extended losses and fell more than 1 percent on Friday as oil rose by more than $2 a barrel while investors also fretted about the outlook for the financial sector.

The Dow Jones industrial average .DJI was down 140.20 points, or 1.09 percent, at 12,726.58. The Standard & Poor's 500 Index .SPX was down 12.58 points, or 0.90 percent, at 1,385.10. The Nasdaq Composite Index .IXIC was down 13.04 points, or 0.53 percent, at 2,438.20. (Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)