US mkts slip on crude rise

CNBC’s Mike Huckman - It looks like the investors were going on a shopping spree after the world’s biggest retailer came in with better than expected earnings but then oil became the story of the day and stocks fell after an early triple digit rally. The Dow finished down 11-point, the Nasdaq dropped 16-point and the S&P 500 lost just a point.

Oil closed up more than a USD 100/bbl for the first time ever and a whole bunch of stuff combined to push crude over that historic threshold are refinery fire in Texas, the escalating battle between Venezuela and Exxon Mobil, talk that OPEC is going to cut production soon and Nigerian political unrest.

Shares of Dow components Exxon and Chevron in its very first day, part of that index, closed about 2% higher. Wal-Mart said that it benefited from people looking for bargains on necessities like food but the CEO warned that the economy presents some challenges ahead including the prices of gas and diesel. Gas of course for the customers to drive to the store and diesel for company trucks that move all the inventory.

Wal-Mart shares closed up just a fraction. After the closing bell computer giant Hewlett-Packard came out with a blockbuster earnings, which could set the tone for the tech stocks on Wednesday. HP beats the street by a nickle and raise guidance for next quarter and for the year the share shut up 6% in late trading.

And sticking with tech Yahoo share fell 2% on reports that Microsoft is gearing up for a proxy fight with the internet company which says the Mr Softee's USD 44 billion offer is too low.

Wall Street Action

• Wal-Mart beats Q4 estimates
• Dow down 11 pts, Nasdaq drops 16 points
• Crude hits record $100/bbl
• Walmart CEO warns that economy poses challenges ahead, including price of gas & diesel
• HP comes out with blockbuster earnings
• Yahoo shares fall 2% after news that Microsoft is gearing for a proxy fight    

Crude at $ 100 - Factors

• Refinery fire in Texas
• Escalating battle between Venezuela & Exxon Mobil
• Talk that OPEC is going to cut production soon
• Nigerian political unrest