By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell for a second straight
day Wednesday, with the Dow industrials suffering their first
back-to-back triple-digit decline in eight months as crude oil
topped $100 a barrel.
"The strife in Libya carries implications that extend well past
its borders and clouds the immediate term outlook for the
investment markets," noted Kevin Giddis, executive managing
director and fixed-income analyst at Morgan Keegan.
A day after its largest fall since Nov. 16, the Dow Jones
Industrial Average (DJI) tumbled as much as 150 points, but more
recently was off 100.24 points to 12,112.55, with 21 of its 30
components tallying losses, led by Hewlett-Packard Co. (HPQ) H-P
shares fell 11% after CEO Leo Apotheker projected revenue for the
current fiscal year will be below expectations.
After a 2.1% drop on Tuesday that marked its worst decline since
Aug. 11, the Standard & Poor's 500 Index (SPX) was lately off
7.36 points at 1,308.08.
Of the S&P's 10 industry sectors, energy performed the best,
with Cabot Oil & Gas Corp. (COG) up 11%; Chesapeake Energy
Corp. (CHK) rising 7.1% and Range Resources Corp. climbing
6.8%.
Stocks more broadly speaking took it on the chin as the price of
crude continued its ascent to two-year highs on concern the violent
struggle in Libya might disrupt supplies, especially if the
upheaval extends to other oil producers in the region.
Heavy users of energy were among those hit hardest, with shipper
FedEx Corp. (FDX) down 4.5% and carrier US Airways Group Inc. (LCC)
off 7.4%.
On Wednesday, Col Moammar Gadhafi reportedly maintained control
on Libya's capital, but large chunks of the eastern portion of the
country remained out of his control as the effort to end his 40
years in power escalated to other cities.
The Nasdaq Composite Index (RIXF) declined 29.01 points to
2,727.41.
Decliners outpaced advancers by a 2-to-1 ratio on the New York
Stock Exchange, where volume topped 833 million at 2:30 p.m.
Eastern.
The losses continued after a report showing existing-home sales
rose to 5.36 million in January from 5.22 million in December.