Falling oil prices dragged down stocks on Tuesday ahead of an expected interest rate hike by the Federal Reserve on Wednesday. Fred Katayama reports.
Falling oil prices dragged down Wall Street Tuesday. Stocks falling after OPEC reported a surprise jump in oil production from its biggest member, Saudi Arabia. Ross Gerber of Gerber Kawasaki: SOUNDBITE: ROSS GERBER, CEO, GERBER KAWASAKI, (ENGLISH) SAYING: "Oil is a big factor. You know, a lot of the increase in earnings in the S&P 500 is based off the increase in oil prices and oil companies having a recovery in their earnings. So with that somewhat at risk, now we do think the oil market will eventually right itself and eventually move higher soon, but you know, it does put risk to earnings estimates for the S&P." The blizzard that slammed the northeastern U.S. grounded flights, hurting airlines stock as well as lowering trading volume. But that didn't keep Fed policy makers from holding their meeting that's widely expected to result in an interest rate hike Wednesday. Billionaire investor William Ackman giving up on Valeant Pharmaceuticals. Shares dropping after he walked away from the drug maker. He lost more than $3 billion by selling his entire stake after trying to rescue the company whose shares have plunged 95 percent since mid-2015. Luxury retailer Neiman Marcus says it's exploring alternatives including a sale. The Wall Street Journal reports the owner of Saks Fifth Avenue, Hudson's Bay, is in talks to buy Neiman. In Europe, shares dipped after four days of gains. Weighing on the markets: bank and energy stocks and uncertainty over the Dutch elections.