US STOCKS-Wall Street falls amid Fed policy worries
* Positive German, Chinese data outweighed by Fed uncertainty
* Fed's Dudley says Fed could begin tapering stimulus this year
* Apple shares jump after most successful iPhone launch ever
* BlackBerry shares fall further after change in focus
* Indexes down: Dow 0.4 pct, S&P 0.5 pct, Nasdaq 0.5 pct
NEW YORK, Sept 23 (Reuters) - U.S. stocks slipped on Monday as upbeat economic data from Germany and China was countered by a Federal Reserve official's remarks that the Fed could begin to scale back its stimulus measures this year.
A rise in Apple shares put a cap on Nasdaq losses while Citigroup led financials lower after a report said its earnings could be hurt by a drop in trading revenue.
A flood of new orders gave a boost to European and Chinese firms in September, according to a clutch of surveys which added to evidence that the global economy is healing, while U.S. factory activity lost some momentum.
Referring to the timeline that Fed Chairman Ben Bernanke articulated in June, New York Fed President William Dudley said the framework is "still very much intact."
Investors were surprised last week when the Fed decided not to reduce the asset purchases from the current $85-billion monthly pace after many expected a change in policy would come in September.
Other Fed officials were on the speakers' circuit Monday, and traders will be paying close attention after St. Louis Fed chief James Bullard said Friday the Fed could still decide to start trimming its stimulus in October if inflation unemployment data warrant it.
"The Fed continues to be the area of focus of markets," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago.
He said following last week's gains the market is in "a period of digestion; the economy is not that strong, so it's hard to be overly enthusiastic."
Kuby added that there is support for equities from the overseas data, however, and "the improvement in Europe isn't getting as much attention as it should."
The S&P 500 and Dow industrials hit record highs last week after the Fed ignored investor expectations by postponing the start of the wind down of its massive monetary stimulus, saying it wanted to wait for more evidence of solid economic growth.
The Dow Jones industrial average fell 53.95 points or 0.35 percent, to 15,397.14, the S&P 500 lost 8.7 points or 0.51 percent, to 1,701.21 and the Nasdaq Composite dropped 17.198 points or 0.46 percent, to 3,757.529.
The prospect of a government shutdown or even a default in the following weeks could keep markets jittery even as Wall Street analysts sense the current drama is likely to feature more bluster than bravado.
Apple shares gained 3.4 percent to $483.12 after previously rising more than 6 percent after it said it sold 9 million iPhone 5s and iPhone 5c models over the weekend since their launch on Friday.
Citigroup led the S&P financial sector lower a day after the Financial Times reported Citi had a significant drop in trading revenue during the third quarter which could hurt the bank's earnings. Citi shares fell 3 percent to $49.66.
U.S.-traded shares of BlackBerry fell 3 percent to $8.46 after the Canadian smartphone maker announced Friday a change in focus away from the consumer in favor of businesses and governments. The move has fueled fears about BlackBerry's long-term viability.
The widely followed Dow Jones industrial average opened Monday with three new components as Goldman Sachs, Visa and Nike replace Bank of America, Hewlett-Packard and Alcoa.
Shares of Goldman, Visa and Nike fell Monday while Alcoa and HP edged higher and Bank of America fell with the financial sector.
On the S&P 500, Vertex Pharmaceuticals and Ametek replaced Advanced Micro Devices and SAIC Inc .