Stocks Remain in Flux

In terms of economic data, the Census Bureau reported that construction spending for September declined 0.3%. Economists were expecting spending to decrease by 0.8%.

The Institute for Supply Management's October manufacturing index showed a reading of 38.9, down from 43.5 in September and below economists' forecast of 42.

Ian Shepherdson, chief U.S. economist for High Frequency Economics, wrote in an email that the ISM index's decline marks its lowest reading since September 1982, and that its decline reflects that orders, production and employment have dropped sharply to deep recession levels. "The key issue now is just how much of [this] plunge in activity reflects the shock of the market meltdown and how much will be sustained. We think there will be a modest bounce next month but the trend is horrific," he wrote.

"Clearly, the reading at 38.9 is very weak," said Gayle of RidgeWorth. He also said that there is a mitigating factor in the bearish data in that overall inventories are not excessive. Whereas in the past, businesses might have been slower to respond to declines in consumer spending, manufacturers have been quicker to respond to the negative environment, he said. "I don't think that number carries the implication of protracted weakness that it has in previous decades or previous cycles."

The European Commission also reported that Europe is probably in a recession and will continue to struggle through the next year.

Shifting to commodities, crude oil was losing $3.36 to $64.45 a barrel. Gold was climbing $11 to $729.20 an ounce.