MARKET SNAPSHOT: U.S. Stocks Plunge After Poor Data

By Victor Reklaitis and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market plunged in early trade on Wednesday as investors unloaded risky assets and piled into havens such as Treasurys and gold.

The main benchmarks fell more than 2% shortly after the open, while the U.S. 10-year Treasury note yield dived 35 basis points, breaching the 2% level.

Disappointing economic reports ahead of the bell added to already jittery sentiment on Wall Street. Reports on manufacturing in the state of New York and U.S. wholesale prices missed expectations, and a reading on retail sales showed a decline for the first time in eight months.

The S&P 500 (SPX) fell 31 points, or 1.7%, to 1,850 and is down more than 8.5% from its peak reached on September 18. The Dow Jones Industrial Average (DJI) dropped 295 points, or 1.9%, to 16,041.76. The Nasdaq Composite (RIXF) plunged 80 points, or 1.9%, to 4,146.11.

Sean Darby, chief global equity strategist at Jefferies, said it's unlikely the U.S. stock market has entered a bear-market phase, but rather investors are just unwinding "unfettered confidence" in central-bank policy.

"The equity market will bottom out once commodity prices find a floor and the fear of deflation recedes," he said in a note dated Tuesday. Crude-oil prices (CLZ4) fell anew on Wednesday, dropping 1% ahead of key supply data. Prices hit a two-year low on Tuesday after a cut in the outlook for oil-demand growth from the International Energy Agency. Energy-related stocks have fallen in the last four sessions.

Read: These 5 charts explain when to call a bottom in the S&P's slide

Today's market-moving news: Among the big companies reporting earnings ahead of the bell, Bank of America (BAC) reported a third-quarter loss that was smaller than expected.

In economic news, the Empire State manufacturing survey retreated sharply to 6.2 in October. Economists polled by MarketWatch had expected a 21.0 reading

Retail sales fell 0.3% in September, and a producer price index dropped 0.1%, while economists surveyed by MarketWatch had predicted a 0.1% increase.

The Federal Reserve's Beige Book is due at 2 p.m. Eastern, and it's expected to paint a picture of an improving U.S. economy.

Stocks to Watch: AbbVie Inc. (ABBV) shares fell 4% after the U.S. drug maker indicated it's reconsidering a $54 billion deal to buy Shire PLC in light of new Treasury rules that make that deal less attractive. Shares of Shire slumped 26% in London, weighing on the FTSE 100, while its U.S.-listed shares (SHPGY) sank 23%. Ireland to close 'Double Irish' tax loophole

Hazmat-suit related companies that have recently rallied on Ebola fears were surging once again in premarket trading on Wednesday. Shares of Lakeland Industries Inc. (LAKE) rallied 15%, Alpha Pro Tech Ltd. (APT) jumped 21% and Versar Inc. (VSR) picked up 36%.

Qualcomm Inc.(QCOM) said it has offered to buy U.K. chip maker CSR PLC in a $2.5 billion deal. In August, CSR rejected a takeover offer from Microchip Technology Inc. (MCHP). U.S-listed CSR shares (CSRE) surged 31%. .

American Express (AXP), Netflix Inc. (NFLX) and eBay Inc. (EBAY) will report after the close. Check out MarketWatch's for previews.

Other markets: Asian stocks largely rebounded from Tuesday losses. Gold prices (GCZ4) edged up.

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