US STOCKS-Wall St falls more than 1 pct; small caps sell off
* Wal-Mart profit falls as severe winter deters shoppers
* Small-caps sell off; Russell 2000 off more than 10 pct from high
* Dow off 1.1 pct; S&P down 1.2 pct; Nasdaq down 1.2 pct (Updates to midday)
By Caroline Valetkevitch
NEW YORK, May 15 (Reuters) - U.S. stocks dropped more than 1 percent on Thursday, fueled by a selloff in small-cap stocks and disappointing results from Wal-Mart.
The Russell 2000 index of small cap stocks tumbled 1.7 percent, putting the index into correction territory. It is down more than 10 percent from its record close of 1,208.65 in early March.
The Russell 2000's decline is "either a leading market indicator or it could be a one-off where it could be a short-term correction, and that's yet to be determined. But as of now it means the sellers are slowly gaining more control," said Adam Sarhan, chief executive of Sarhan Capital in New York.
The S&P 500 is trading below technical support, its 50-day moving average, near 1,868. A close below that level could indicate further weakness.
Wal-Mart Stores Inc shares fell 2.3 percent to $76.90, weighing on both the S&P 500 and Dow, after the world's largest retailer forecast second-quarter profit below analysts' estimates. The company also reported its smallest growth in quarterly sales in nearly five years. Continuación...