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Solar stocks down as Senate proposes to phase out tax

credits

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Eli Lilly ( LLY ) to acquire Verve Therapeutics ( VERV ) for up to $1.3 bln

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Retail sales post biggest drop in four months in May

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Indexes down: Dow 0.8%, S&P 500 0.9%, Nasdaq 1%

(Updates to US afternoon trading)

By Caroline Valetkevitch

NEW YORK, June 17 (Reuters) - U.S. stocks were lower on

Tuesday, with indexes adding to losses in afternoon trading as

the Israel-Iran conflict raged on for a fifth day, with the U.S.

military moving fighter jets to the Middle East.

Reuters reported, citing three U.S. officials, that the U.S.

military is deploying more fighter aircraft to the Middle East

and extending the deployment of other warplanes.

President Donald Trump said that U.S. patience was wearing

thin but it had no immediate intention to "take out" Iran's

leader.

In addition, Iran's semi-official Mehr news agency said

Iran's senior army commander called on Israelis to evacuate

Haifa and Tel Aviv immediately.

The war began on Friday when Israel attacked Iran's nuclear

facilities.

"We're in a period where visibility is not great,

uncertainty is high, and the wall of worry is under

construction," said Terry Sandven, chief equity strategist at

U.S. Bank Wealth Management in Minneapolis, Minnesota.

Besides the Middle East conflict, investors are closely

watching for any new information on Trump's tariffs, his tax-cut

bill and on U.S. interest rates.

The Federal Reserve is expected to announce a monetary

policy decision on Wednesday, although policymakers are expected

to leave rates unchanged.

All of the major S&P 500 sectors were lower except for

energy, which was up 1.7%, while shares of Exxon Mobil ( XOM )

were up 2%. Investors have worried that the conflict

could create bottlenecks for oil exports from the oil-rich

Middle East.

The Dow Jones Industrial Average fell 323.28 points,

or 0.76%, to 42,191.81, the S&P 500 lost 51.45 points, or

0.85%, to 5,981.53 and the Nasdaq Composite lost 189.33

points, or 0.96%, to 19,511.89.

Among declining stocks, solar stocks fell after U.S. Senate

Republicans late on Monday unveiled proposed changes to Trump's

tax-cut bill, including a phase-out of solar, wind and energy

tax credits by 2028.

Shares of Enphase Energy ( ENPH ) dropped 23.2% and Sunrun ( RUN )

fell 39.4%.

Eli Lilly ( LLY ) eased 1.6% after it agreed to acquire

Verve Therapeutics ( VERV ) for up to $1.3 billion. Shares of

Verve surged 79%.

Earlier Tuesday, data showed U.S. retail sales dropped more

than expected in May, while factory production barely rose last

month.

Declining issues outnumbered advancers by a 2.04-to-1 ratio

on the NYSE. There were 76 new highs and 65 new lows on the

NYSE.

On the Nasdaq, 1,369 stocks rose and 3,013 fell as declining

issues outnumbered advancers by a 2.2-to-1 ratio.

(Additional Reporting by Kanchana Chakravarty and Sukriti Gupta

in Bengaluru; Editing by Maju Samuel)