US STOCKS-Wall St sells off as Exxon Mobil, oil weigh
* Alphabet surpasses Apple as most valuable U.S. company
* Exxon Mobil reports results, cuts capex
* Indexes down: Dow 1.8 pct, S&P 1.9 pct, Nasdaq 2.2 pct (Updates to close)
By Caroline Valetkevitch
Feb 2 (Reuters) - U.S. stocks dropped on Tuesday after another steep drop in oil prices and a disappointing spending forecast from Exxon Mobil.
Shares of Exxon fell 2.2 percent to $74.59 after the oil major reported its smallest quarterly profit in more than a decade, forecast a 25-percent drop in capital spending from 2015 levels and suspended share repurchases.
With Exxon, "not only did the earnings disappoint people, but the fact that they slashed capex so much and they (suspended) their share repurchase program. It's a good indication that one more large oil company is not seeing an improvement in the environment," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
Earlier Tuesday, BP Plc reported an annual loss of $6.5 billion, its largest ever.
The S&P energy index slid 3.3 percent, the biggest drag on the S&P 500. Brent and U.S. crude fell as hopes faded for a deal between OPEC and Russia to cut output. Continuación...