After gaining close to 300 pointson the Dow, stocks retreated on Tuesday as oil prices continued to slide. Bobbi Rebell reports.
A big rebound rally on Tuesday fizzled by the afternoon. The Dow gave up almost 300 points in intraday gains- stocks closing lower for the third day, led by a drop in materials and energy shares. David Gaffen, Reuters markets editor: SOUNDBITE: DAVID GAFFEN, REUTERS MARKETS EDITOR (ENGLISH) SAYING: "People are really sort of unsure about what the drop in oil prices means, and they are kind of rotating between the idea that it's good for the markets because its something related to supply and that will help consumers, and that's all wonderful. And then they sort of shift to the other side and think maybe this spells doom for the global economy and we're going to have a lot of problems here and they kind of vacillate between the two." After the closing bell, shares of CSX moved higher. The rail transport company's earnings were in line with forecasts, and revenues beat expectations. Profits and revenues were up at homebuilder KB Home. It was able to sell more new homes at higher prices in the fourth-quarter- and new home orders jumped 10 percent. But the stock tumbled after the firms CEO warned of near-term margin pressures. Shares of Goodyear Tire and Rubber fell after the company said full-year operating income growth would be below forecasts. Ocwen Financial's stock got clobbered. California is seeking to suspend the mortgage collection company's license- saying it has not complied with information requests from regulators. Apple shares were among the most actively traded on the Nasdaq, after Credit Suisse upgraded the stock to outperform on increased projections for iPhone sales. European stocks climbed higher led by retail shares and expectations of new economic stimulus measures from the European Central Bank.