U.S. stocks slid on Wednesday, unable to take advantage of a drop in oil prices as investors fretted about corporate earnings and disappointing March retail sales.
U.S. retail sales rose 0.3 percent last month, less than half the 0.7 percent pace predicted by Wall Street, after a sharp downturn in department store and clothing sales.
U.S. bond prices initially rose on the retail sales news as investors bet it would let the Federal Reserve keep raising interest rates at a measured pace, but later turned mixed.
Although the dollar initially slipped after the retail sales report, it later rebounded to finish largely flat.
The Dow Jones industrial average was down 104.04 points, or 0.99 percent, to finish at 10,403.93. The Standard & Poor's 500 Index was down 13.97 points, or 1.18 percent, to close at 1,173.79. The Nasdaq Composite Index was down 31.03 points, or 1.55 percent, to close at 1,974.37.
The Dow fell by its biggest percentage amount in four weeks, while the S&P 500's percentage drop was the biggest for seven weeks and the Nasdaq's was the biggest for nine weeks.
"General concerns over the economy continue, with some of the macroeconomic numbers that we received, especially on the retail sales side, being so far below expectations," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank Private Wealth Management.
Analysts said the retail sales number implied weaker-than-forecast gross domestic product growth in the first three months of the year.
Apple Computer Inc. (AAPL.O: Quote, Profile, Research) , the maker of iPod digital music players, weighed on the Nasdaq, falling almost 4 percent, or $1.62 to $41.04, after a Banc of America Securities analyst said its second-quarter profit could fall short of the high end of Wall Street's estimates.
After the closing bell, Apple shares fell 0.6 percent to $40.76. The company said second-quarter earnings rose sharply, exceeding the most optimistic Wall Street expectations. But its revenue forecast for the third quarter was below the more optimistic expectations.
During the regular session, shares of Harley-Davidson Inc. (HDI.N: Quote, Profile, Research) weighed on the S&P 500 after the motorcycle maker cut its profit and production targets for the year. It lost 17 percent to $48.75, its biggest percentage drop in more than 13 years.