Stocks Fall as Oil Prices Surge

Stocks fell today on bad news on earnings and record prices for crude oil. American Express, General Motors, and UPS all took hits. "The negative UPS news could shake confidence in the broader transport stocks," an analyst tells the Wall Street Journal. The Dow ended down 49.18 to 12527.26, the Nasdaq 26.64 to 2322.12, and the S&P 11.05 to 1354.49.

An analyst for a futures brokerage says the increased crude prices—they topped $112 for the first time before settling at $110.87—are hitting refineries especially hard. "Refiners just can't afford to buy crude anymore," he says. The markets have been more or less flat since the initial rally at the beginning of the 2nd quarter, notes the Journal. "Everybody has this gloom-and-doom attitude about the US economy right now," says a portfolio manager. (More stock market stories.)