By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks mounted losses on Friday, sending the S&P 500 below the 1,800 level as a global rush out of stocks and emerging-markets currencies intensified, while company earnings offered investors little respite.

The main indexes are headed for the worst weekly losses in more than a year. The S&P 500 (SPX) fell below the psychologically significant level of 1,800 for the first time since Dec. 18, dropping 29.41 points, or 1.6%, to 1,799.18. The benchmark index is now 2.8% below its record high, reached Jan 15. The index is set to record its second straight week of losses.

The Dow Jones Industrial Average (DJI) dropped 244.6 points, or 1.5%, to 15,954.37 and is headed for its worst weekly loss since May 2012. The last time the blue chip index had two consecutive days of triple digit losses were in Dec 11. and Dec 12.

The Nasdaq Composite (RIXF) lost 73.17 points, or 1.8%, to 4,145.23 and on track to record a weekly loss after two weeks of gains. Over the course of the week, the tech-heavy index reversed its early 2014 gains. Follow the U.S. markets on the live blog

Investors began selling stocks and emerging-markets currencies heavily on Thursday following weak Chinese economic data. Main indexes on Wall Street sold off, prompting some analysts to call it the beginning of a long-awaited correction.

Adding to the pressure from emerging markets, Argentina on Friday loosened restrictions on purchases of U.S. dollars after it devalued the peso.

"In 2013 the list of concerns in equity markets really narrowed and some of them were not even on the radar, but this year some concerns are back," said Drew Wilson, investment analyst at Fenimore Asset Management.

"Last year markets gave corporations an amnesty on earnings, regardless of what they were, but this year corporations need to prove their profits are sustainable before being rewarded," Wilson said.

"Today's drop on the S&P 500 still puts us within 5% of the record high and this environment is certainly beginning to be good for value investors, who had a difficult time last year as bargains were scarce," he added.

"We think the flight to quality will continue, as investors realize how much profit they have made in the S&P 500 last year. This kind of selling could well be a spark for the correction," said Uri Landesman, president at Platinum Management.

Investors digested earnings results from several heavyweights in a day with no U.S. economic data.

Kimberly Clark Corp. (KMB)announced its fourth-quarter earnings and jumped to $539 million, or $1.40 per share, beating analysts' expectations. Shares in the consumer-goods company rose 2.3%.

Procter & Gamble Corp.'s (PG) profit fell, but its core earnings beat expectations. Shares in Procter & Gamble rallied 2.5%.

Honeywell International Inc. (HON) shares fell in a choppy trade and were down 0.7% as the company's quarterly earnings missed expectations.

Bristol-Myers Squibb Co. (BMY) reversed earlier gains and dropped 4.8% soon after the pharmaceutical company reported a better-than-expected rise in revenue and earnings.

Shares in Care.com (CRCM) jumped 36% on their debut, after the non-medical-care management company sold shares at $17, the higher range of its initial offer.

Shares of Microsoft (MSFT)(MSFT) bucked a weaker tech tone, up 2.6% after the company beat Wall Street estimates with fourth-quarter results.

Shares of Starbucks (SBUX) were up 3.1% after the coffee giant posted a 25% rise in profit, though sales missed Wall Street's targets.

EBay Inc. (EBAY) fell 0.7% after Carl Icahn said he is ready for a proxy fight to win two seats on the board of the online auctioneer, with the intent of pushing eBay to spin off PayPal.

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