Stocks fall on energy shares, consumer worries

By Rodrigo Campos

NEW YORK (Reuters) - The Dow industrials six-day winning streak came to a halt on Thursday as a drop in oil prices pulled energy stocks lower and a guarded outlook from Wal-Mart fanned worries about consumer spending.

Stocks were also undermined by a U.S. dollar rally, as its safe-haven appeal rose after several policymakers around the world warned the economic recovery was fragile.

With earnings season coming to a close, and looking beyond the Federal Reserve's meeting last week, investors searched for new catalysts to determine the market's direction.

"As the S&P 500 has gone above 1,100, it has had a hard time holding on to gains," said Quincy Krosby, market strategist at Prudential Financial in Shelton, Connecticut.

Both the Dow industrials and the S&P 500 hit 13-month closing highs on Wednesday.

Oil futures settled down 3 percent below $77 per barrel as data confirmed crude and refined product inventories rose last week. The S&P energy sector index fell 2 percent, with shares of Hess Corp (HES.N) down 2.5 percent to $55.95 and Occidental Petroleum Corp (OXY.N) down 1.6 percent to $81.81.

The Dow Jones industrial average .DJI fell 93.79 points, or 0.91 percent, to 10,197.47. The Standard & Poor's 500 Index .SPX dropped 11.27 points, or 1.03 percent, to 1,087.24. The Nasdaq Composite Index .IXIC lost 17.88 points, or 0.83 percent, to 2,149.02.

"In order to get to the next level up, (the market) does need a strong catalyst, and most of the time the stronger dollar has been a negative," Krosby said.