US STOCKS-Wall St falls with small caps, though off lows for session
* Wal-Mart profit falls as severe winter deters shoppers
* Small-caps decline; Russell 2000 briefly off more than 10 pct from high
* Dow off 1.1 pct; S&P down 1 pct; Nasdaq down 0.7 pct (Updates to afternoon)
By Caroline Valetkevitch
NEW YORK, May 15 (Reuters) - U.S. stocks slumped on Thursday after a drop in small-cap stocks and disappointing results from Wal-Mart.
The Russell 2000 index of small cap stocks was down 0.7 percent after earlier trading in correction territory, down more than 10 percent from its record close of 1,208.65 in early March.
Indexes were off their lows for the day, however, as the small-cap index recovered some ground to outperform the S&P 500. The S&P 500 had briefly traded below technical support, its 50-day moving average, before trimming some losses.
Still, the Russell 2000's move raised concern about the strength of the broader market, with the Dow and S&P 500 near record highs.
"Either this is 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. Continuación...