U.S. stocks opened lower on Monday as a resurgent U.S. dollar drove a pullback in the price of oil and other commodities, while a broker downgrade hurt shares of Wal-Mart Stores Inc .

Data showing that manufacturing in New York state shrank in June at a more severe rate than expected presented an additional headwind for stock investors eager for more signs that the end of the recession was nearer.

The Dow Jones industrial average <.DJI> dropped 114.80 points, or 1.30 percent, to 8,684.46. The Standard & Poor's 500 Index <.SPX> dropped 12.24 points, or 1.29 percent, to 933.97. The Nasdaq Composite Index <.IXIC> dropped 24.96 points, or 1.34 percent, to 1,833.84.

(Reporting by Chuck Mikolajczak; Editing by Padraic Cassidy)