Market Lurching To-and-Fro

As members of Congress debate the merits of a potential $25 billion aid package for the automakers, CEOs of Ford, GM and Chrysler were appearing before the Senate Banking Committee to plead their case for federal money.

Looking at the day's earnings, hardware store operator Home Depot (HD Quote) announced earnings that fell 31% year over year on declining revenue, but the results were enough to edge past analysts' estimates.

Fashion retailer Saks (SKS Quote) swung to a third-quarter loss.

Shares of Corning (GLW Quote) were taking a beating after the glass-panel maker withdrew its fourth-quarter guidance on weakening demand for LCD televisions and computer monitors.

In merger news, Alpha Natural (ANR Quote) and Cliffs Natural Resources (CLF Quote) announced they had agreed to drop previous plans for a merger valued at about $10 billion.

Shifting to economic data, the Bureau of Labor Statistics reported that producer prices fell by a record 2.8% in October. Economists were expecting a decline of 1.8%. The core rate PPI increased by 0.4%, above expectations for a 0.1% uptick.

The National Association of Realtors said that, for the third quarter, the median U.S. home price fell 9% year over year and that the price of houses has fallen in 80% of U.S. cities. Separately, the National Association of Home Builders - Wells Fargo housing market index fell to nine for November from 14 in October, reaching a record low.

As for commodities, crude oil was down 56 cents to close at $54.39 a barrel. Gold fell $9.30 to settle at $732.70 an ounce.