Stocks Surrender Gains, Lose Ground

The Standard & Poor's Case Shiller home price index, meanwhile, showed a third-quarter decline of 16.6% year over year, the worst decline on record.

In Europe, the Organization for Economic Cooperation and Development said that the developed world may face the worst recession it has seen since the early 1980s.

Looking at earnings news, computer systems maker and Dow component Hewlett-Packard (HPQ Quote) delivered earnings that beat estimates on the top line but saw profit decline slightly year over year.

In the merger space, mining concern BHP Billiton (BHP Quote) dropped a hostile takeover bid for Rio Tinto (RTP Quote) on a sharp decline in commodity prices and tough credit conditions.

Moving on to commodities, crude oil was losing $3.15 to $51.35 a barrel. Gold was down $1.40 to $819 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year was up 1-14/32, yielding 3.16%. The 30-year was gaining 2 points to yield 3.68%. The dollar was falling vs. its major foreign competitors.

Overseas, European exchanges, such as the FTSE in London and the Dax in Frankfurt, were eking out gains. Asian markets, including Japan's Nikkei and Hong Kong's Hang Seng, finished on the upside.