US STOCKS-Wall St slips over 1 pct; S&P breaks below key level

* Moody's downgrades Spain's sovereign debt rating * China trade deficit grows unexpectedly * Initial jobless claims, U.S. trade data disappoint * Dow off 1.4 pct, S&P off 1.4 pct, Nasdaq off 1.5 pct * For up-to-the-minute market news see [STXNEWS/US] (Updates to late morning, changes byline)
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