Southwest Airlines shares tumbled along with the Dow Jones Industrial Average Wednesday during a light day of trading as markets failed to spark a hoped-for "Santa Claus" rally to end the year.

The Dow Jones Industrial Average fell 366.55 points, or 1.10%, to close at 32,875.01. The S&P 500 dipped 46.25 points, or 1.21%, to close at 3,829.24, and the Nasdaq Composite Index fell 139.94 points, or 1.35%, to close at 10,213.29.

Southwest stock plunged for the second consecutive day after the carrier canceled thousands of flights and struggled to resume normal service after severe winter weather grounded flights nationwide.

Shares of Southwest (LUV) fell 5.16%, or $1.75 a share, to close at $32.19 on Wednesday. On Tuesday, Southwest shares fell 5.96%.

Stocks slipped after the National Association of Realtors reported that pending home sales fell 4% on a monthly basis. Economists polled by Dow Jones had expected a decline of 1.8%.

Some stocks that fell Wednesday included Apple (AAPL), which closed at $126.04, down $3.99, or 3.07%. Netflix (NFLX) shares fell 2.57%, or $7.29 a share, to close at $83.04.

"On low volume, the market is trying its best to keep its head above water after a disappointing start to the official Santa Claus rally," Louis Navellier, founder and chief investment officer of Navellier & Associates, told CNBC. "It's a bit of reversion to the mean as sectors hit hardest are seeing some bottom fishing."