Stocks falter after weak economic data (Reuters)

NEW YORK (Reuters) - Stocks fall Wednesday as another round of weak economic data challenge on the basis of an economic recovery.

The S & P was off the coast of more than 1 per cent after climbing in the four previous sessions. The gains came even as data showed a decline in growth in the second quarter, a trend supported by private employment and factory reports on Wednesday.

U.S. private employers added a bit of 38 000 jobs in may, the lowest level since September 2010, according to data from ADP Employer Services.

The Institute for supply management index of national factory activity falls to 53.5 in may--its worst since September 2009 - 60.4 the previous month.

"There is clearly an ongoing debate in the market how the slowdown that we see is temporary, related to the situation in the Japan and disturbance in the supply chain, and how it is a more fundamental slowdown", said Keith Hembre, Chief Economist for the first of us Fund in Minneapolis.

"The data stream has been universally negative for the past few weeks... but it should be borne in mind that (reading above 50) is always consistent with a moderate in the manufacturing sector growth."

The Dow Jones industrial average (.)(DJI) has dropped from 157.57 points, or 1.25%, to 12,412.22. The Standard & Poor 500 Index (.)(SPX) slid 16.44 points, or 1.22%, to 1,328.76. Nasdaq Composite Index (.)(IXIC) fell 24.17 points or 0.85%, to 2,811.13.

Bank stocks were among the worst performers, with JPMorgan Chase & Co (JPM).(N) off the coast of 3% to $42 and US Bancorp (USB).(N) fell by 2.7% to $ 24.92 miscellaneous. The KBW bank index (.)(BKX) has dropped by close to 3%.

Inc. (Macy M.N) dipped 1.1 28.55% $ after the operator to store displayed a 7.4% increase in can same store stores, beating expectations.

Sealed Air Corp (see.)(N) lost 4.8% to $24.33 after the bubble wrap maker has agreed to buy maker private products cleaning Diversey Holdings to 2.9 billion in cash and stock.

Marathon Oil Corp. (MRO).(N) fell by 2.8% to $52.71 after the integrated oil company made an agreement to acquire oil and gas properties in the shale of Eagle Ford of Texas on the ground of the KKR investment capital firm (KKR.)(N) and Hilcorp resources Holdings LP for $ 3.5 billion.

(Reported by Chuck Mikolajczak; additional reports by Rodrigo Campos; editing by Jeffrey Benkoe)

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