Tech Stocks Taken Apart

Back in the U.S., M&A activity wasn't enough to lift the market. Ingersoll-Rand (IR Quote) said it will acquire Trane (TT Quote) for $10.1 billion in cash and stock. Shares of Trane surged 21.6% to close at $45.25, but Ingersoll-Rand slid 11.6% to $43.47.

Elsewhere, insurer Ace Ltd. (ACE Quote) will buy Combined Insurance Co. of America from Aon Corp. (AOC Quote) for $2.4 billion. Ace rose $1.75, or 2.9%, to $61.26. Aon tacked on 57 cents, or 1.2%, to $49.51.

Another deal will see a merger of two oil-service firms, as National Oilwell Varco (NOV Quote) will acquire Grant Prideco (GRP Quote) for more than $7 billion. Shares of Grant Prideco jumped 13.8% to $54.01.

On the economic front, the Commerce Department said that the third-quarter current account deficit came in at $178.5 billion, down from $188.9 billion in the second quarter. The deficit was much narrower than expected.

"The market chaos is all over these data, but the trend in the current account deficit is now favorable," said Ian Shepherdson, chief economist with High Frequency Economics.

Also on the economic docket, the New York Federal Reserve said its Empire State manufacturing index tumbled to a reading of 10.3 in December from 27.4 last month.

U.S. Treasury securities were rallying. The 10-year note was up 23/32 in price, dropping the yield to 4.15%. The 30-year bond was adding 1-5/32 in price, yielding 4.59%.

Commodity prices were mixed. Crude oil was down 64 cents to $90.63 a barrel, gold rose and silver was little changed.