- The S&P 500 lost 0.32% to 1,802.62 while the Dow Jones Industrial Average dropped 0.33% to 15,973.13. The Nasdaq closed 0.2% lower at 4,060.49.
- Asian markets closed lower, depressed by data showing Chinese factory production was up 10% in November, shy of estimates of 10.1%, according to Bloomberg. Japan's Nikkei 225 Index fell 0.25% to 15,611.31 and Hong Kong's Hang Seng clipped 0.28% to 23,744.19. In Europe, Germany's DAX fell 0.88%, France's CAC 40 was off 1% and London's FTSE closed 0.56% lower.
- Negotiators in Congress have a Dec. 13 deadline to reach agreement on automatic spending cuts. A deal would solve a three-year impasse of failed negotiations which have unsettled equity markets.
- The Securities and Exchange Commission and the Commodity Futures Trading Commission approved the Volcker Rule. The ruling is designed to limit the big banks' ability to engage in proprietary trading, a move which would reduce volatility.
- Stock movers included Newmont Mining (NEM)NEM, which jumped 2.4% to $24.18 amid the biggest rise for gold prices in seven weeks. Goldman Sachs (GS)GS gained 1.3% to $169.77 as the Volcker Rule was ushered in. Twitter (TWTR)TWTR extended Monday's gains, reaching an all-time high on Tuesday on rumors Icahn has bought shares in the microblogger. The social network on Tuesday gained 5.8% to $51.97, more than 15% higher than its IPO's opening price in November.
- Also moving markets, Icahn Enterprises (IEP)IEP, the activist investor Carl Icahn's takeover shop, announced plans to sell 2 million shares to raise money for investments by some of the firm's subsidiaries. Shares of Icahn Enterprises tumbled 10.8% to $132.50.
- S&P Winner and Loser: WPX Energy (WPX)WPX was the best performer in the S&P 500 as shares jumped 4.2% to $19.33, while Campbell Soup Company (CPB)CPB fell the most by 3.8% to $40.94.
- Data released by the Census Bureau in the morning showed wholesale inventories rose 1.4% in October, well over a 0.3% gain expected by analysts surveyed by Reuters.
-- By Jane Searle and Joe Deaux in New York
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV