Stocks Tumble, Merrill Issues Mortgage Warning, Oil Rallies

Stocks tumbled for the second straight day as retail sales slump, Deere disappointed and Merrill Lynch issued dire mortgage warning. However, midday bargain hunters pushed the indexes up off their lows with the DJIA closing down -109.51 to 11532.96, the Nasdaq giving back -1.99 to 2428.62, and the broad based S&P 500 index fell -3.77 to 1285.82.

Deere (DE | Quote | Chart | News | PowerRating) - The tractor and farm machinery manufacturer fell 3.32% or $2.30 to $67.05/share after missing profit forecasts due to construction slow down in US.

Merrill Lynch (MER | Quote | Chart | News | PowerRating) - The investment bank climbed 2.49% or $0.62 to $25.50/share despite losses and dire statements regarding the mortgage meltdown being far from over.

Liz Claiborne (LIZ | Quote | Chart | News | PowerRating) fell 11.40% or $1.70 to $13.21/share as the maker of Kate Spade bags and Juicy Couture clothing announced a second quarter loss and a grim annual profit forecast for the 2nd time this year.

Exxon Mobil (XOM | Quote | Chart | News | PowerRating) climbed 1.65% or $1.27 to $78.15 as the world's largest oil company followed the gains in oil today.

Oil soared $3.27 to $116.28/barrel due to a US Government report indicating a decline in Gasoline supplies. Gold advanced strongly $19.30 to $833.90/oz ending eight consecutive losing sessions on speculative buying. The Volatility Index or VIX climbed 1.80% to 21.55 reflecting a slight increase in market decline fears.

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