Wall St slips on spike in oil price

CNBC's Bertha Coombs - The continuing ‘super-spike’ in oil prices is fueling inflation worries prompting a late day sell-off on Wednesday. The Dow tumbled 206 points, the S&P 500 dropped 27 slipping back below 1,400 while the Nasdaq fell 44.

Financials help lead the decline Fannie Mae dropping nearly 6% on dismal housing data and on an analyst note from Friedman Billings Ramsey Group Inc (FBR) which said the government-sponsored enterprises (GSE) has capital constraints. Beyond banks Dow component AIG (AIG Commodity Index) tumbled nearly 7%. Despite fresh record oil prices Exxon Mobil, Chevron and energy shares were also among the bluechip losers.    

Just days after been spurned by Yahoo report say Microsoft bankers are making new overtures to Facebook. Microsoft took a 1.6% stake in Facebook last year with an implied value of USD 15 billion for the company, so far the social networking site has been adamant about remaining independent.

Wall Street Action:

• Continuing super spike in oil prices fuel inflation worries
• Dow tumbles 206 pts, S&P 500 drops 27 and Nasdaq falls 44 pts
• Financials lead the decline
• Microsoft bankers make new overtures to Facebook
• So far, Facebook has been adamant about remaining independent