RALEIGH, N.C. — Tornado warnings were issued for several North Carolina counties Sunday as a storm system swept across the state and brought the threat of high winds and heavy rain.

A tornado warning was issued for parts of Mecklenburg, Cabarrus, Iredell and Lincoln counties until 6:30 p.m. Forecasters also said a spotter reported a funnel cloud near Highway 73 east of Lincolnton.

A tornado watch was in effect for about half of North Carolina, mostly central and eastern counties, as a storm system moves across the state. Forecasters warned of hail up to two inches in diameter, wind gusts to 80 mph and lightning.

Observers across the state reported hail ranging from the size of a penny to a quarter, the weather service said.

The National Weather Service moved the watch line eastward as the system pushed along. About 5 p.m., the watches extended 70 miles east and west of a line between the Elizabeth City area and the Wilmington area.

Forecasters also warned of damaging winds with gusts between 50 and 65 mph in the mountains and foothills of North Carolina through Monday night.

Winds already blew down trees and limbs that knocked out power to 985 Progress Energy customers in western North Carolina, the utility said. Duke Energy reported 732 outages in North Carolina.

Asheville emergency crews were getting ready to respond to downed tree calls, five of which had come in by 4 p.m., said Division Chief Michael Knisely.

"We're ramping up with the idea that we are going to have winds continuing the remainder of the evening," Knisely told the newspaper.