U.S. stocks closed down in a choppy session on Wednesday as oil resumed its decline. Bobbi Rebell reports.
Wall Street's morning rally collapsed when oil prices switched direction and fell. The Dow and S&P 500 gave ground for the third straight session. Independent market strategist Peter Kenny on what took down oil: SOUNDBITE: PETER KENNY, INDEPENDENT MARKET STRATEGIST, KENNY'S COMMENTARY (ENGLISH) SAYING: "The distillate number, the closer number, the number that represents the closer, closer to the consumer, saw a build of twice what was anticipated, and that once again reignited fears of consumer, tepid consumer demand." Fueling basic materials stocks: news that Dow Chemical and DuPont are in merger talks that could produce a giant worth more than $120 billion. Dow soared to an all-time high. Yahoo abruptly scrapped its plan to spin off its big stake in Chinese e-commerce giant Alibaba. Both stocks fell. Costco shares fell after the discount retailer reported lower comparable sales for the third straight quarter. Bloated inventories squeezed Lululemon's quarterly profit. Its disappointing bottom line sent shares further south. As for U.S. wholesale inventories, stockpiles fell in October. That could be a drag on fourth quarter growth. In Europe, healthcare stocks like Bayer led shares down to their lowest level in more than a month.