S&P GLBL CLN ENGY : Financials extend losses; S&P 500 off 1 percent

NEW YORK (Reuters) - Stocks fell on Wednesday, sending the Dow and the S&P 500 down more than 1 percent, as financial shares sold off on worries about the widening scope of mortgage losses, while disappointing earnings from Deere & Co heightened concerns about the economy's health.

A rebound in oil prices added to the negative tone after a government report showed unexpectedly large declines in crude and gasoline stockpiles in the latest week.

Shares of Bank of America were a top drag on the S&P 500, falling more than 7 percent to $28.93, as the S&P financial index <.GSPF> slid nearly 4 percent.

The Dow Jones industrial average <.DJI> fell 171.95 points, or 1.48 percent, to 11,470.52. The Standard & Poor's 500 Index <.SPX> declined 13.43 points, or 1.04 percent, to 1,276.16. The Nasdaq Composite Index <.IXIC> shed 21.55 points, or 0.89 percent, to 2,409.06.

(Reporting by Ellis Mnyandu; Editing by James Dalgleish)