AIG, Oil Stymie Stocks

Activision ATVI was gaining 7% after sales of Guitar Hero 3 and Call of Duty IV led to robust fourth-quarter earnings.

Treasury prices were surrendering their early gains. The 10-year note was unchanged in price, yielding 3.78%, and the 30-year bond was gaining just 5/32, yielding 4.53%.

The dollar was weak against most of its competitors, including declines of 0.8% against both the yen and the Swiss franc. The euro rose 0.2% to $1.5437.

On the data side, the March U.S. trade deficit shrank to $58.2 billion from $61.7 billion in February, in part because the stumbling greenback made domestic goods cheaper overseas. Analysts expected the deficit to be $61 billion.

Meanwhile, markets overseas were sinking. Tokyo's Nikkei fell 2.1% overnight, and Hong Kong's Hang Seng shed 1.5%. Europe's major indices weren't much better. London's FTSE was losing 1.2%, and the Paris Cac was retreating 2.5%. Frankfurt's Dax was lower by 1.3%.