Investing.com -- U.S. stocks fell sharply on Wednesday, erasing considerable gains from the previous session, as major declines in Macy’s Inc (NYSE:M) shares triggered a sell-off in the retail sector and a disappointing session by Walt Disney Company (NYSE:DIS) weighed on the Dow Jones Industrial Average.
The Dow lost 217.23 or 1.21% to 17,711.12, while the NASDAQ Composite index fell 49.19 or 1.02% to 4,760.69, halting a three-day winning streak. The S&P 500 Composite index dropped 19.93 or 0.96% to 2,064.46, as nine of 10 sectors closed in the red. Stocks in the Consumer Services, Financials and Health Care industries lagged, each falling more than 1% on the session. Stocks in the Utilities sectors led, moving fractionally higher.
Macy's, one of the largest retailers in the U.S., dragged down the major indices after missing first quarter sales forecasts and slashing full-year revenue expectations on Wednesday. At one point in the session, Macy's tumbled to 52-week lows erasing all of their gains year to date. It came as the company's same-store sales, a closely-watched industry metric, declined for the fifth straight quarter. The subdued quarter from Macy's raised fresh questions about the viability of brick-and-mortar stores, as consumer continue to flock to major e-commerce websites to handle a bulk of their shopping needs. As a result, the SPDR Retail ETF suffered its worst one-day loss since 2011. Shares in Target Corporation (NYSE:TGT) and Kohl’s Corporation (NYSE:KSS) both fell by more than 5%, while JC Penney Company Inc Holding (NYSE:JCP) shares lost 0.21 or 2.53% to 7.89.
The top performer on the Dow was Microsoft Corporation (NASDAQ:MSFT), which ticked up 0.03 or 0.06 to 51.05. Microsoft finished just above Chevron Corporation (NYSE:CVX), which inched down 0.11 or 0.11% to 101.16. It came as U.S. crude futures surged more than 3% above $46 a barrel, amid an unexpected draw in domestic crude stockpiles last week. While shares in Chevron are down 6% over the last year, they have rebounded more than 20% since early-February. Disney finished as the worst performer, losing 4.31 or 4.04% to 102.29, shaving off approximately 30 points on the Dow. On Tuesday after the bell, Disney posted a rare earnings miss amid softer consumer product sales and relative advertising weakness at ESPN. Meanwhile, investors remained concerned about future pricing structures at ESPN as the prospects for Pay TV bundles continues to evolve.
The biggest gainer on the NASDAQ was Electronic Arts Inc (NASDAQ:EA), which surged 8.75 or 13.56% to 73.29 in the wake of stellar earnings and revenues during its last quarter. For the first quarter of 2016, Electronic Arts saw its adjusted revenue jumped 3.1% driven by strong sales among its Star Wars Battlefront and sports video games. The worst performer was Endo International, which tumbled 1.84 or 11.86% to 13.68. Shares in Endo have nearly fallen in half in value since the specialty drugmaker slashed its guidance late last week.
Electronic Arts was also the top performer on the S&P 500, just ahead of Freeport-McMoran Copper & Gold Inc (NYSE:FCX), which gained 0.75 or 6.91% to 11.61, as gold futures rallied following a sizable two-day sell-off. The worst performer was SPLS, which plunged 1.86 or 17.95% to 8.50. On Tuesday night, Staples terminated a $6.3 billion merger with Office Depot Inc (NASDAQ:ODP) after a U.S. federal judge approved the Federal Trade Commission's request for a temporary injunction, effectively thwarting the deal. Following the ruling, Staples shares plunged 10% in the after-hours session before trading was halted.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,934-1,112 margin.