Stocks recovered much of their losses late in the trading day on Tuesday, but still closed in the red after another big drop in oil prices. Bobbi Rebell reports.
Wall Street cut its losses, but still closed in the red. The day once again saw weakness in financial and energy shares. Oil prices tumbled, and investors worried about banks' exposure to energy loans and their sensitivity to interest rates. Economic data was weak. Wholesale inventories slipped for a third straight month in December. Kevin O'Leary, Chairman of O'Shares: SOUNDBITE: KEVIN O'LEARY, CHAIRMAN, O'LEARY FUNDS (ENGLISH) SAYING: "We are having a big repricing in multiple sectors simultaneously. We have the energy drag with oil below $30 that is a big psychological negative. We now have a scare in the media space triggered by Viacom, which is dragging down all the media names. We had a revaluation of price earnings multiples in tech so all of this I'd call it downdraft, if you will, is repricing the entire market. And, in fact, Viacom shares plummeted. Weak ad sales contributed to a drop in quarterly revenue, and its CEO got into a testy exchange with analysts on a conference call. Separately, the media giant notched an advertising deal with messaging app Snapchat. Investors weren't ordering up Wendy's shares. Revenue fell despite the success of the burger chain's "4 for $4 meal" campaign. Spirit Airlines' stock got a lift after its CEO said he wants to improve the budget carrier's reliability. Goodyear Tire burning rubber. Profit fell but breezed past estimates. And sales volumes recovered in the region covering Europe, Middle East and Africa. In Europe, energy and financial stocks dropped. Shares overall fell for a seventh straight session.