By Whitney Kisling May 17 (Bloomberg) -- U.S. stocks fluctuated as a slowdown in New York manufacturing and a lower-than-estimated earnings forecast at Lowe’s Cos. tempered optimism that the economy will weather the European debt crisis. Lowe’s, the second-largest U.S. home-improvement retailer, tumbled 4.8 percent. Home Depot Inc., JPMorgan Chase & Co. and Chevron Corp. lost at least 1.5 percent to lead declines in the Dow Jones Industrial Average. GLG Partners Inc. rallied 48 percent after Man Group Plc agreed to buy the hedge-fund company for $1.6 billion. The Standard & Poor’s 500 Index fell 0.1 percent to 1,134.07 at 9:59 a.m. in New York after rallying as much as 0.6 percent. The Dow Jones Industrial Average slipped 0.3 percent to 10,593.86. Manufacturing in the New York region expanded at a slower pace in May than forecast as sales cooled. The Federal Reserve Bank of New York’s general economic index fell to 19.1 from 31.9 in April, which was the second-highest level in four years. Readings greater than zero signal gains in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut. Lowe’s slid 4.8 percent to $24.83. The Mooresville, North Carolina-based company projected second-quarter earnings of as much as 59 cents a share, short of the 62-cent average of analyst estimates. Lowe’s is bracing for “a year of transition” in 2010, the company said in a statement today. U.S. stocks fell for a second day on May 14, paring the biggest weekly rally in two months, as concern Europe’s debt crisis is destabilizing its currency overshadowed stronger-than- estimated reports on retail sales and industrial production. Euro Erases Losses The euro today slid to the lowest level in more than four years against the dollar on concern European measures to reduce fiscal deficits will undermine the region’s recovery. The currency traded as low as $1.2235 before erasing losses to trade little changed at $1.2369. European finance ministers, meeting in Brussels today, are under pressure to show they can reduce deficits fast enough to satisfy investors and then police budgets effectively once targets are met. Spain and Portugal have already announced budget cuts. European leaders agreed last week to a $1 trillion financial lifeline meant to instill confidence with investors. To contact the reporters on this story: Whitney Kisling in New York at wkisling@bloomberg.net.

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