Stocks declined on the first trading day of 2008, after a much weaker than expected ISM manufacturing report was released, and oil hit $100 per barrel for the first time.

Early gains turned to large losses after the report's release, which showed U.S. manufacturing contracted in December, after expanding for the past 10-months. Shortly after that news, oil rose to a record high.

The hits kept on coming, with the Fed minutes revealing further rate cuts may be needed due to the ongoing problems in the credit and housing markets. Then late this afternoon, the Justice Department announced a criminal investigation into the CIA's destruction of interrogation tapes.

National City (NCC | Quote | Chart | News | PowerRating) cut its quarterly dividend and shutdown its wholesale mortgage unit (read more).

PHH Corp. (PHHW | Quote | Chart | News | PowerRating) announced the termination of its merger agreement with General Electric Capital Corp., a unit of General Electric (GE | Quote | Chart | News | PowerRating) (read more).

VeriFone (PAY | Quote | Chart | News | PowerRating), which on Monday delayed filing its annual report, was among the largest decliners on the NYSE today (read more).

BJ's Wholesale Club (BJ | Quote | Chart | News | PowerRating) also fell after the company was downgraded by JP Morgan (read more).