NEW YORK (TheStreet) -- Bad retail numbers, a massive recall and hawkish Federal Reserve comments weighed on the markets midday and soured sentiment on the major indices.
The S&P 500, Dow Jones Industrial Average, and Nasdaq all fell more than half-a-percent by 1:30p.m. in the wake of disappointing earnings from Home Depot (HD), Dick's Sporting Goods (DKS), and Staples (SPLS). Small caps took an even larger hit. The iShares Russell 2000 (IWM) fell more than 1.6% by 1p.m.
On StockTwits.com, investors said the retail results and small cap price action pointed to further market declines.
Sentiment on the ETF that tracks the S&P 500 (SPY) fell to 62% bearish, according to StockTwits' analytics. Sentiment on the ETF that tracks the Dow (DIA) was also majority bearish with 51% of the crowd calling for declines. However, most conversations about the Nasdaq indicated gains ahead. About 64% of the crowd was bullish on the ETF that tracks the Nasdaq (QQQ).
General Motors (GM) added to the bearish mood. The embattled U.S. automaker recalled another 2.4 million vehicles to resolve safety issues and said it would take a $400 million charge for repairs this quarter. The announcement brings the grand total of recalled cars to 13.6 million. Many of those recalls were related to faulty ignition switches that GM did not address for more than a decade.