Stocks took another hit in Tuesday's trading as crude oil continued its dramatic drop, closing below $48 a barrel. Bobbi Rebell reports.
The selloff continued on Wall Street- The S&P energy sector was down close to 2 percent and the biggest drag on the S&P 500. U.S. crude oil fell more than 4 percent to below $48 a barrel on mounting worries about a supply glut. Jeff Grossman, President, BRG Brokerage SOUNDBITE: JEFF GROSSMAN, PRESIDENT, BRG BROKERAGE (ENGLISH) SAYING: "I personally think that, with these lower prices, you will see all consumption increasing dramatically. You'll see, I've already seen, we're talking about the car industry, they're starting to buy the cars, they'll buy the bigger gas loads, people are gonna turn their thermostats up. I think, in general, you'll see, because people don't consider it an issue now, so they'll be a littler looser with their energy consumption. " Investors got further signs that the U.S. economy slowed in the fourth quarter after an unexpectedly strong third quarter. The services sector cooled more than expected in December and new orders for manufactured goods fell for a fourth straight month in November. Sonic shares jumped in after hours- after the fast food chain's earnings beat forecasts. Same store sales jumped 8.5 percent. Also after hours- memory chipmaker Micron Technology posted stronger quarterly results- a stabilizing personal computer industry supported demand for its chips. Michael Kors shares fell after Credit Suisse downgraded the handbag maker to neutral from outperform and slashed its price target. The brokerage says stockpiles are rising, traffic is softening, and that has forced Michael Kors to slash prices on its handbags. Verizon's CEO says the company is not planning any major acquisitions- but did say AOL- along with other media companies- could be potential partners. The comments came after a Bloomberg report that Verizon was trying to sign an acquisition or joint venture deal with AOL to expand its mobile video offerings. Both Verizon and AOL shares were higher. Twitter's stock rose after the microblogging service said it had resolved the issue that had delayed tweets from appearing on timelines. The biggest gainer on the Nasdaq: Minerva Neurosciences. The biotech company said its compound improved the symptoms of Parkinson's disease in monkeys. In Europe, concerns over Greece's upcoming election and that oil price slide sparked a late selloff. Shares ended lower.