By Cal Mankowski
NEW YORK (Reuters) - Stocks fell on Tuesday as surging oil prices escalated concerns about how higher energy costs will affect the economy, profits and consumer spending, while disappointing earnings outlooks also darkened the mood.
All three major U.S. stock indexes dropped more than 1 percent, while an index of airline stocks <.XAL> plunged 11.6 percent and an index of retailers' shares <.RLX> slid 2.6 percent as crude oil futures rose $2 to a record above $119 per barrel.
Microchip maker Texas Instruments Inc
UnitedHealth Group Inc
"The price of oil is the over-arching issue," said Matt Kaufler, portfolio manager and equity analyst at Clover Capital Management in Rochester, New York. "Everyone keep saying that it's overdone but the price keeps going up. The more it stays elevated, the more inflation fears becomes cemented in."
The Dow Jones industrial average <.DJI> was down 145.34 points, or 1.13 percent, at 12,679.68. The Standard & Poor's 500 Index <.SPX> was down 16.31 points, or 1.17 percent, at 1,371.86. The Nasdaq Composite Index <.IXIC> was down 42.19 points, or 1.75 percent, at 2,365.85.
On the Nasdaq, shares of online DVD rental company Netflix Inc
Dow component McDonald's Corp
Shares of UAL Corp
In economic news, the National Association of Realtors said the pace of existing home sales in the United States fell 2 percent in March, in a report that showed the U.S. housing market continues to struggle.
(Editing by Jan Paschal)