By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell significantly for a
second straight day Wednesday, with the Dow industrials in danger
of suffering triple-digit declines in back-to-back sessions for the
first time in eight months as crude oil topped $100 a barrel.
Stocks broadly speaking took it on the chin as the price of
crude-oil futures touched $100 a barrel for the first time since
October 2008, as violent conflict in Libya threatened exports,
especially if that upheaval extends to further oil producers in the
region.
Oil for April delivery ended at $98.10 a barrel, up $2.68, or
2.8%, after hitting a high of $100.01 during the session.
On Wednesday, Col. Moammar Gadhafi reportedly maintained control
of Libya's capital, but large chunks of the eastern portion of the
country remained out of his control as the effort to end his more
than 40 years in power reached additional Libyan cities.
"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 biggest drop since Nov. 16, the Dow Jones
Industrial Average (DJI) tumbled as much as 150 points, but more
recently it was off 76.78 points at 12,136.01, with 21 of its 30
components tallying losses, led by Hewlett-Packard Co. (HPQ) H-P
shares fell 10% after CEO Leo Apotheker projected revenue for the
current fiscal year would be below earlier expectations.
After a 2.1% drop Tuesday that marked its worst decline since
Aug. 11, the Standard & Poor's 500 Index (SPX) was recently off
4.98 points at 1,310.46.
Of the S&P's 10 industry sectors, energy performed best,
with Cabot Oil & Gas Corp. (COG) up 12%, Chesapeake Energy
Corp. (CHK) rising 6.7% and Range Resources Corp. climbing
7.4%.
Heavy users of energy were among those hit hardest, with shipper
FedEx Corp. (FDX) down 4% and passenger carrier US Airways Group
Inc. (LCC) off 6.4%.
The Nasdaq Composite Index (RIXF) declined 23.33 points to
2,733.06.
Decliners outpaced advancers nearly 2-to-1 on the New York Stock
Exchange, where volume topped 1 billion at 3:30 p.m. Eastern.
Composite volume neared 5.1 billion.
The losses continued after a report showing existing-home sales
rose to 5.36 million in January from 5.22 million in December.
Wall Street's two-day decline marks its second sizable
retrenchment this year; the first came in late January, as
investors worried about then-escalating violence in Egypt.