XOM Exxon Mobil Corp

By Ellie Ismailidou and Victor Reklaitis, MarketWatch

Dow drops 360 points or 2.2%; S&P 500 sheds 48 points or 2.5%

U.S. stocks rang up sharp losses Wednesday in a tough day of trading marked by investors unloading consumer-discretionary and health-care shares.

A renewed slump in crude-oil prices added to the selling pressure, driving the S&P 500 and the Dow Industrials to their lowest levels since Sept. 29, 2015.

The S&P 500 closed 48.40 points, or 2.5%, lower at 1,890.28. All of the S&P 500's 10 main sectors ended in negative territory. Consumer-discretionary led losses, down 3.4%, followed by health care, off 2.9% and information technology, down 2.8%.

The Dow Jones Industrial Average dropped 364.81 points, or 2.2%, to 16,151.41, with 29 of its 30 components in the red. Shares of Goldman Sachs Group Inc. (GS) and Home Depot (HD) contributed to nearly 90 points to the Dow's drop.

Exxon Mobil Corp. (XOM) was the only component that ended in positive territory, up 0.6%.

Meanwhile, the Nasdaq Composite finished the bruising session down 159.85 points, or 3.4%, at 4,526.06, its lowest point since Aug. 25, 2015. And the Russell 2000 closed down 3.3% on the day, falling more than 13% over the past 10 sessions--its biggest 10-day drop since October 2011, according to FactSet data.

Earlier, the main indexes appeared to be on track to claw back some of their losses from an ugly first week of the year. But they turned lower as oil pulled back from an early rally (http://www.marketwatch.com/story/oil-turns-lower-as-eia-reports-hefty-increases-in-gasoline-distillate-supplies-2016-01-13) following news that supplies of gasoline and distillates jumped last week (http://ir.eia.gov/wpsr/wpsrsummary.pdf).

The drubbing in consumer-discretionary stocks (http://www.marketwatch.com/story/consumer-discretionary-stocks-have-worst-one-day-loss-since-aug-24-2016-01-13) -- which includes retailers, media services, household durable goods, textiles and apparel firms, among others -- reflects the "expectation of a slowdown in the last-standing economic sector in the U.S.," said Krishna Memani, chief investment officer at OppenheimerFunds.

With manufacturing already in recession, consumption was "the only sector that looked good," based on growing consumer income and a tighter labor market, Memani said.

Meanwhile, stocks in the transportation sector , which are vulnerable to energy prices, seemed to bear the brunt of the decline, tumbling 3.4% to their lowest level in over two years, according to FactSet data.

Broader markets have recently been closely tracking the gyrations in oil prices , said Aaron Jett, vice president of Equity Research at Bel Air Investment Advisors.

Read:Oil at $10 a barrel--maybe even under $0? Analysts play 'how low can you go' (http://www.marketwatch.com/story/oil-at-10-a-barrel-maybe-even-under-0-analysts-play-how-low-can-you-go-2016-01-13)

Read: Gundlach warns investors not 'to be a hero' in this wild market (http://www.marketwatch.com/story/gundlach-warns-investors-not-to-be-a-hero-in-this-wild-market-2016-01-13)

Read: S&P could plunge 75% to 550, says SocGen perma-bear Albert Edwards (http://www.marketwatch.com/story/socgen-perma-bear-albert-edwards-sees-sp-plunging-65-2016-01-12)

(http://www.marketwatch.com/story/heres-when-you-should-be-thinking-about-jumping-back-into-stocks-this-year-2016-01-13)

Other markets: Most Asian markets finished higher on Wednesday, but China's Shanghai Composite slumped 2.4%, closing below 3,000 for the first time since August (http://www.marketwatch.com/story/asian-markets-rise-on-better-than-expected-china-exports-2016-01-12). It is now less than 23 points off its summer low, hit on Aug. 26. European stocks (http://www.marketwatch.com/story/european-stocks-leap-as-chinese-data-soothe-nerves-2016-01-13) gained, while gold futures inched higher. A key dollar index moved up. Treasury yields edged lower (http://www.marketwatch.com/story/treasury-yields-edge-up-as-oil-rebounds-2016-01-13)

Individual movers: CSX Corp. (CSX) shares fell 5.7% Wednesday, after the company late Tuesday delivered earnings that beat forecasts but reported weaker-than-anticipated revenue (http://www.marketwatch.com/story/csx-revenue-falls-13-as-coal-shipments-decline-2016-01-12-18485624).

Supervalu Inc. (SVU) stocks tumbled 15.5% after the company reported before the open profit and sales that matched estimates (http://www.marketwatch.com/story/supervalu-sees-challenges-as-profit-and-sales-match-estimates-2016-01-13).

Netflix Inc. (NFLX) finished 8.6% lower to lead consumer-discretionary and tech stocks lower (http://www.marketwatch.com/story/netflix-stock-plunge-highlights-tech-sector-rout-2016-01-13). Shares of Amazon.com Inc. (AMZN), lost 5.8%, joining the tech rout.

Yum Brands Inc. (YUM) fell 0.1% after the KFC parent said late Tuesday that same-store sales gained last month in China (http://www.marketwatch.com/story/yum-shares-rise-after-china-same-store-sales-gain-2016-01-12).

MetLife Inc. (MET) shares jumped 2.2%, following news the insurer plans to spin off its U.S. retail business (http://www.marketwatch.com/story/metlife-shares-surge-on-plan-to-separate-us-retail-business-2016-01-12).

Microsoft Corp.(MSFT) shares fell 2.2%, releasing earlier gains after the company officially abandoned Windows 8 (https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=1&cad=rja&uact=8&ved=0ahUKEwithoGDg6fKAhWMPD4KHe15AAAQqQIIHCgAMAA&url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fgordonkelly%2F2016%2F01%2F12%2Fmicrosoft-abandons-windows-8%2F&usg=AFQjCNFj1HskjtsBkQzb6nkBFOUBg0-Gnw&sig2=PBPQeaW6Z_2U-2gTAqkBrQ&bvm=bv.111396085,d.cWw).

Medical technology company Stryker Corp. (SYK) shares rose 0.7% after the company hiked its profit outlook (http://www.marketwatch.com/story/stryker-raises-earnings-guidance-2016-01-12-18485758).

Economic news:The Federal Reserve's Beige Book (http://www.federalreserve.gov/monetarypolicy/beigebook/default.htm), which features anecdotal evidence on economic conditions in the U.S., offered Wednesday afternoon a mixed picture of the economy (http://www.marketwatch.com/story/beige-book-portrays-jekyll-hyde-economy-2016-01-13).

Earlier in the day, Dallas Fed President Robert Kaplan said that he is closely watching the "tough start" to financial markets in 2016 (http://www.marketwatch.com/story/feds-kaplan-cautions-against-overreacting-to-stock-markets-tough-start-2016-01-13), but said it was important not to overreact.

Meanwhile, Boston Fed President Eric Rosengren said the Fed's forecast of four interest-rate hikes in 2016 has risks (http://www.marketwatch.com/story/feds-forecast-of-4-rate-hikes-in-2016-has-risks-rosengren-2016-01-13), citing weakness overseas and only "limited data" supporting the Fed's forecast that inflation will rise to its 2% target by 2018.

(END) Dow Jones Newswires

January 13, 2016 17:04 ET (22:04 GMT)

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