Stocks, Bonds Hit Hard

By sector, some software makers were stronger. However, metals and miners, oil and gas services, construction, Internet retail, steel and semiconductors were all lower.

The Amex Gold Bugs index lost 2.58% to end the day at 345.42. The Philadelphia Oil Service Sector index lost 1.79% to 212.46, and the Philadelphia/KBW Bank Sector index fell 0.7% to 106.80.

The Amex Airline index lost 1.3% on the day to 54.22, and the Philadelphia Semiconductor Sector index slumped 1.84% to 514.94.

The dollar carved out its largest one-day rally against the euro in a month on increased interest rate speculation. Higher rates in the U.S. make dollar-denominated assets more attractive by upping their return, and this spurs demand for the greenback. The dollar also gained on the yen.

Market breadth was negative. Losers beat winners more than 4 to 1 on the New York Stock Exchange as 1.53 billion shares changed hands, and decliners topped advancers more than 2 to 1 on the Nasdaq on volume of 2.02 billion shares.

A lot of stocks were under pressure, including Research In Motion(RIMM Quote). The company swung to a fourth-quarter profit of $18.4 million, or 10 cents a share, but adjusted earnings were 65 cents a share, missing estimates by 2 cents.

RIM's quarterly revenue was also short of estimates, coming in at $561.2 million, compared with the $567.2 million consensus. For the current quarter, RIM guided to earnings of 60 cents to 65 cents a share on revenue of $580 million to $610 million. Analysts wanted earnings of 76 cents a share on $625.6 million in revenue. RIM ended the day down 5.45% at $79.78.

Restaurant operator CKE(CKR Quote) said fourth-quarter earnings jumped tenfold to $154.3 million, or $2.14 a share, reflecting a big tax gain. Adjusted earnings of 22 cents a share were 4 cents ahead of estimates. Sales fell 4% to $348.5 million, and the stock lost 3.49% to close at $17.41.