US STOCKS-Wall St slips as little progress seen in Europe

* Investors concerned about terms of aid deal for Spain
    * Worries persist over Greek elections
    * Wall St coming off S&P's best week of 2012
    * Indexes off: Dow 0.5 pct, S&P 0.5 pct, Nasdaq 0.7 pct

 By Edward Krudy 
    NEW YORK, June 11 (Reuters) - U.S. stocks fell on Monday as
Europe's aid package for Spanish banks did little to alleviate
investor concerns about the region's finances and the slowdown
in the wider global economy. 
    Spanish bond yields rose as a bailout of up to $125 billion 
for the country's struggling banks failed to quell concerns that
Madrid may be locked out of funding markets and  forced to seek
external help. Some were also concerned that the new debt would
subordinate existing bond holders.  
    The New York-traded stock of Spanish lender Banco Santander
fell 2.5 percent to $5.97. Weakness in Europe's financial sector
was mirrored in the United States where the S&P financial index
 fell 1.2 percent and was the weakest performing sector. 
    Shares of Morgan Stanley, which has recently been a
barometer of concerns about Europe due to perceptions of the
investment bank's exposure to the region, fell 2 percent to
$13.43.    
    "This is a realization that Spain, while providing money for
its banks, is going to add to its debt-to-GDP ratio, and it's
going to potentially subordinate some of the current Spanish
sovereign debt, which doesn't make those bond holders happy,"
said Paul Zemsky, head of asset allocation at ING Investment
Management in New York. 
    "They're borrowing more money, not doing anything about
growth," Zemsky said. "Today we're not worried about Spain's
banking system falling off a cliff, but other than that, nothing
has changed." 
    Spain's 10-year bond yields ended the day 25
basis points higher at 6.5 percent as an early rally quickly
evaporated. 
    The Dow Jones industrial average dropped 62.33
points, or 0.50 percent, to 12,491.87. The Standard & Poor's 500
Index fell 6.66 points, or 0.50 percent, to 1,319.00. The
Nasdaq Composite Index lost 21.03 points, or 0.74
percent, to 2,837.39. 
    Investors fear a crisis in Spain would compound the currency
bloc's troubles before June 17 elections in Greece, which many
think could lead to Greece's exit from the euro zone. 
    The worries come at a time when economies the world over are
showing signs of slowing. China's inflation, industrial output
and retail sales all flagged in May. It was the second straight
month of sluggish growth. 
    U.S. companies are finding it more difficult to increase 
revenue now than at just about any time since the financial
crisis. Firms that make up the S&P 500 are expected to boost
sales by just 2.2 percent in the current quarter, according to
Thomson Reuters data.  
    Apple Inc Chief Executive Tim Cook opened the
company's annual developers conference on Monday, where he is
expected to unwrap souped-up software and hardware to help it in
its mobile race against Google Inc. Apple's shares gave
up early gains to trade up just 0.2 percent at $581.76. 
    Goldman Sachs is close to striking a deal over the
sale of its hedge fund administration business with State Street
Corp, the Financial Times reported. The move would
create the largest administration services provider to hedge
funds worldwide. The stock fell 0.7 percent to
$93.86.