US STOCKS-Wall St falls as retailers, Caterpillar weigh
* Retailers' shares slide after earnings
* GM recalls another 2.42 million vehicles
* Aeroflex jumps, to be acquired by Cobham for $1.46 bln
* Dow off 0.9 pct; S&P 500 down 0.7 pct; Nasdaq off 0.8 pct (Updates to midday trading, adds GM recall)
By Chuck Mikolajczak
NEW YORK, May 20 (Reuters) - U.S. stocks fell on Tuesday as retailers' shares dropped after earnings from TJX Companies and Staples halted the market's two-day winning streak.
TJX Cos Inc shares slumped 7 percent to $54.34 and ranked as the biggest drag on the S&P 500 after the owner of off-price chain stores TJ Maxx and Marshalls reported lower-than-expected quarterly revenue.
Staples Inc tumbled 13.1 percent to $11.64 after the office supply retailer posted first-quarter earnings and forecast a decline in sales in the current quarter. The S&P retail index fell 0.8 percent.
But Home Depot shares managed to rebound from pre-market declines after the company's chief financial officer said sales in May were "robust," taking the sting out of its disappointing first-quarter results due to the severe winter. Home Depot rose 2.2 percent to $78.21 and was the S&P 500's best performer. Continuación...