Closing Bell: Morgan Stanley to Cut 1,200 Jobs; Stocks Slip

Stocks moved from heavy to slight losses for much of the day, ending modestly lower Tuesday after crude oil closed its third straight session in the red. Signs of weaker Chinese trade hurt materials stocks, pulling major names such as Alcoa (AA) and Dow Chemical (DOW) lower. Morgan Stanley (MS) could cut 1,200 jobs, which includes nearly 500 of its traders and salespeople. The bank expects to take a $150 million charge in the fourth quarter tied to severance packages. Fairchild Semiconductor (FCS) jumped after receiving a new bid from an undisclosed buyer. The offer of $21.70 a share is higher than a previously-offered $20-a-share deal from ON Semiconductor (ON).