(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.) * Home Depot falls as U.S. same-store sales miss estimates * Auto shortages, spend shift to services tank U.S. retail sales (Updates with close of U.S. markets) Aug 17 (Reuters) - Wall Street’s main indexes slid on Tuesday, weighed down by a drop in U.S. retail sales that raised concerns about the economic recovery, as well as by disappointing results from Home Depot. Almost all of the S&P 500’s sectors were lower, with consumer discretionary the weakest performer. Home Depot shares fell sharply after the company’s U.S. same-store sales fell short of estimates for the first time in nearly two years as pandemic-fueled do-it-yourself projects tapered off. Shares of rival Lowe’s Companies also dropped. A report showed that U.S. retail sales fell more than expected in July, as supply shortages depressed motor vehicle purchases and the boost to spending from the economy’s reopening and stimulus checks faded, suggesting a slowdown in growth early in the third quarter. “The retail sales drop I think clarified for investors that COVID may well be a big problem going into the fall,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. All three major U.S. indexes ended well lower, after the S&P 500 and the Dow Industrial had previously closed at record highs for five straight sessions. “The (market) backdrop remains really solid,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “At this point, when you have some of these negative macro indicators coming in and you have markets that are selling at all-time highs with pretty expensive valuations by any measure, there is just going to be more vulnerability to that kind of bad news.” Unofficially, the Dow Jones Industrial Average fell 279.68 points, or 0.79%, to 35,345.72, the S&P 500 lost 31.37 points, or 0.70%, to 4,448.34 and the Nasdaq Composite dropped 137.58 points, or 0.93%, to 14,656.18. With the market in a period that has seasonally been weak historically, investors have said stocks may be due for a significant drop, with the S&P 500 yet to experience a 5% pullback this year. On Monday, the S&P 500 closed 100% above its March 2020 low. Still, market watchers have said that huge amounts of cash held by investors and companies could protect stocks from severe declines, as buyers are quick to look for opportunities to scoop up cheaper shares. In an encouraging sign about the economic rebound, a Federal Reserve report on Tuesday showed production at U.S. factories surged in July. Investors are looking for signs about when the Fed will rein in its easy money policies, with minutes from the central bank’s latest meeting due on Wednesday, and are watching the resurgence in COVID-19 cases and its impact on the economy. (Reporting by Lewis Krauskopf in New York, Devik Jain and Ambar Warrick in Bengaluru; Editing by Maju Samuel and Aurora Ellis) Our Standards: The Thomson Reuters Trust Principles.