NEW YORK, July 1 (Xinhua) -- Wall Street dropped sharply in early trading Tuesday, as oil jumped by over three U.S. dollars a barrel and analysts reduced earnings estimates for banks.

    Crude oil rebounded above 143 dollars a barrel in early trading amid concerns of tensions in the Middle East and a weakening dollar. Wall Street worries that high energy prices will hurt consumer spending, which accounts for more than two-thirds of U.S. economic activity.

    Goldman Sachs and Citigroup reported a lower revenue forecast as UBS cut its earnings estimates for U.S. banks.

    A measure of the U.S. manufacturing sector released at 10 a.m. EST is expected to show contraction for the fifth straight month in June as businesses struggle with inflation and nervous consumers.

    Moreover, GM and Ford also slipped before the release of a report forecast to show U.S. car sales slumped to a 15-year low last month.

    The Dow Jones fell 94.28 points to 11,255.73. Broader indexes also tumbled. The Standard & Poor's 500 index slipped 10.87 points to 1,269.13; and the Nasdaq dipped 23.54 to 2,269.44 points.