U.S. stocks closed sharply lower on Tuesday, driven by a five percent drop in oil prices. Leah Duncan reports.
The selloff in oil slammed Wall Street. Energy shares led a broad-based decline. Nicholas Colas of Convergex: SOUNDBITE: NICHOLAS COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH) SAYING: "The markets are worried about global deflation. They're worried that oil is going to drive a piece of that equation." ExxonMobil shares fell after the oil giant said it'll suspend buybacks and deeply cut spending this year. It posted its smallest quarterly profit in over a decade. Michael Kors shares had their biggest one-day gain in two years. The handbag maker's comparable quarterly sales fell much less than expected. Mattel also surged higher thanks to strong demand for Barbie dolls and Hot Wheels. Sales climbed for the first time in two years. Alphabet vaulted ahead of Apple in market value one day after it reported strong earnings. Yahoo! also reported. The company announced plans to cut its workforce and said it's exploring strategic alternatives. And Automakers' shares fell, even though U.S. sales topped expectations in January. Like the U.S., falling oil prices and BP's big quarterly loss dragged European shares lower.