Stocks struggle after rally

Wall Street dips as investors hesitate ahead of economic data. Oil prices lower as OPEC meets.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Aaron Smith, staff writer

When do you plan to retire?
  • Around 65
  • As soon as humanly possible
  • I want to keep working as long as I can
  • I'm already retired

NEW YORK ( -- Stocks struggled Tuesday morning, as investors were cautious after the previous session's advance on relief about the government's housing rescue plan.

The Dow Jones industrial average (INDU), the broader Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all inched lower in the early going.

That followed a strong session Monday, when the Dow surged 289 points. The rally was fueled by the government takeover of mortgage giants Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), which was announced on Sunday.

Oil: Tuesday's focus will be on oil, because the Organization of Petroleum Exporting Countries was meeting in Vienna to decide whether or not to cut supply.

Saudi Arabia's oil minister Ali Naimi described the oil market as being "fairly well balanced" and in a "healthy position," suggesting that OPEC might maintain the status quo for oil supply.

Oil prices fell $2.12 a barrel, to $104.22, as the downgrading of Hurricane Ike to a Category 1 storm alleviated concerns that it would disrupt oil supplies in the Gulf of Mexico. The storm battered Haiti and killed hundreds before making landfall on Cuba on Sunday. It is expected to hit Havana on Tuesday before heading into the Gulf.

Gas prices also dropped, by 0.6 cent to $3.652 a gallon nationwide, according to the motorist group AAA. It has declined 11% from the record high of $4.114 on July 17.

Economy: At 10 a.m. ET, the Commerce Department will announce the level of wholesale inventories in July. A consensus of economists surveyed by expects an increase of 0.7%, compared to a gain of 1.1% in the prior month.

Also at 10 a.m., pending home sales for July will be announced. A consensus of economists expects a decline of 1.4%, compared to a gain of 5.3% in the prior month.

Markets: European markets were higher, but Asia stocks ended lower. The U.S. dollar fell versus the euro and the British pound, but edged up against the yen. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Meet the kids dressed as Oscars red carpet stars By now, you've seen the red carpet looks from the 2015 Oscars. But you haven't seen 5 year-olds dressed up like A-listers at the awards, until now. Photographer Tricia Messeroux and designer Andrea Pitter recreated the pint-sized looks in just 36 hours. More
Flying economy doesn't have to be miserable For those willing to shell out just a little extra, several à la carte services offer experiences usually reserved for First Class passengers. More
Consumer Reports' Top Picks - American cars are back The magazine's favorite cars include three American models for the first time in years, thanks to a big boost from Tesla. More