US STOCKS-Wall St drops on credit worries, oil

(Updates with the Dow industrials falling 1 pct)

NEW YORK, July 28 (Reuters) - U.S. stocks fell on Monday, pushing the Dow 1 percent lower, as financial shares slid on fears about the outlook for banks and a rise in the price of oil revived concerns about inflation and consumer spending.

The Dow Jones industrial average .DJI fell 112.11 points, or 0.99 percent, at 11,258.58, while the Standard & Poor's 500 Index .SPX declined 6.95 points, or 0.55 percent, at 1,250.81. The Nasdaq Composite Index .IXIC fell 21.14 points, or 0.91 percent, at 2,289.39. (Reporting by Walter Brandimarte; Editing by Kenneth Barry)