Oil hits fresh 5 and a half year lows as stocks tumble again in a volatile session. Bobbi Rebell reports.
The slide in oil prices- to new 5-1/2 year lows- took stocks down as well. The S&P 500 fell below a key technical level it hadn't crossed since late October. U.S. crude dipped under $56- down nearly 50 percent from highs in June. Still the oil cartel OPEC affirmed that it has no plans to cut output. S&P Capital IQ energy analyst Stewart Glickman: SOUNDBITE: STEWART GLICKMAN, GROUP HEAD, ENERGY AND MATERIALS, S&P CAPITAL IQ (ENGLISH) SAYING: "I think OPEC is sort of pushing all her chips in the middle and kind of daring U.S. shale producers to blink first. I think that's going to happen." Cirrus Logic could be getting more business from Apple- possibly supplying lower power audio chips used in the iPhone 6S next year. . Barclays upgraded the chipmaker's stock and upped its target more than 50 percent- also saying it could be getting a supplier contract from Samsung. PetSmart is being taken private in the largest leverage buyout deal of the year. A consortium led by private equity firm BC Partners is buying the pet supplies retailer for $8.7 billion. Credit Suisse predicts this could spark interest in other retailers like Bed Bath & Beyond and Dick's Sporting Goods. In economics news, the largest increase in nine months of factory production couldn't offset the concern over energy. Also tempering that optimism: a weak report on manufacturing from the New York Fed. In Europe, the drop in oil prices fueled fears of deflation.. sending the indexes lower.