Stocks Can't Shake Financial Worries

Separately, FedEx (FDX Quote) announced it will drop the Kinko's name from its retail business and incur a charge as it writes down the value of that operation. Tough economic conditions should bring total quarterly charges to some $891 million. Shares dipped 0.8%.

Office-supplies retailer Staples (SPLS Quote) boosted its buyout bid for Dutch-based Corporate Express (CXP Quote) to $14.13 a share (9.15 euros), or $2.6 billion, from the prior $11.17 (7.25 euros) a share. Staples said that the offer is contingent on the rejection of Corporate's pact to buy France-based Lyreco, which was meant to deflect the original Staples bid.

Staples shares were advancing 1.3%; Corporate bounced 4.7%.

Back in commodities, gold futures sank $11.50 to $885.50 an ounce

Treasury prices were again on the rise, with the yield on the 10-year note dropping back under the 4% mark, as investors ventured back to the safe shores of government bonds. Recently, the 10-year added 12/32 in price, bringing the yield down to 3.91%. The 30-year bond lifted by 20/32 in price, yielding 4.63%.

Foreign exchanges were mixed. In Asia, Tokyo's Nikkei 225 slid 1.6% overnight, and Hong Kong's Hang Seng Index plunged 1.8%. Among European bourses, London's FTSE 100 was climbing 0.8%, and Germany's Xetra Dax rose 0.2%. The Paris Cac was higher by 1%.