US stocks drop; Wal-Mart slumps on weak guidance

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NEW YORK (AP) Stocks are closing lower, led by declines in retailers after a disappointing forecast by Wal-Mart.

Wal-Mart plunged 10 percent Wednesday after the huge retailer said it expects its profit to take a hit as the company works to fend off intensifying competition.

Traders were also sizing up a mixed batch of earnings. JPMorgan Chase led financial stocks lower after its earnings fell short of forecasts.

The Dow Jones industrial average gave up 157 points, or 0.9 percent, to 16,924.

The Standard & Poor's 500 lost nine points, or 0.5 percent, to 1,994. The Nasdaq composite declined 13 points, or 0.3 percent, to 4,782.

Bond prices rose. The yield on the 10-year Treasury note fell to 1.98 percent.