Stocks fall on housing and retail worries

NEW YORK (Reuters) - Stocks fell in thin volume on Tuesday, with the major indexes giving up more than 1 percent as housing data showed a steep drop in home values and continued concerns about the U.S. economy weighed on retailers, undermining the market's earlier gains.

* General Motors was among the top drags on the Dow as investors contemplated whether last weekend's $17.4 billion aid package from the U.S. government will provide enough of a lifeline for automakers to avoid bankruptcy.

* The Dow Jones industrial average <.DJI> fell 116.29 points, or 1.36 percent, to 8,403.48. The Standard & Poor's 500 Index <.SPX> tumbled 9.98 points, or 1.14 percent, to 861.65. The Nasdaq Composite Index <.IXIC> lost 19.11 points, or 1.25 percent, to 1,513.24.

(Reporting by Leah Schnurr; Editing by Jan Paschal)