Midday Report: Shell Forecasts Slumping Profit; Stocks Tank

The S&P 500 fell to its lowest level in 14 months as oil prices spiraled lower. A series of disappointing earnings reports also hurt stocks with IBM (IBM) taking a big chunk out of the Dow after reporting its 15th straight quarter of falling revenue. Crude oil slid below $28 a barrel to breach new 12-year lows. Commodities remained under pressure after the International Energy Agency warned the global oil market could drown in oversupply this year. Royal Dutch Shell (RDS.A) felt the fallout from lower oil prices in its fourth quarter. The oil giant expects quarterly profit to drop between 40% and 50% in the quarter to December, a period in which crude prices tanked more than 20%.