Stocks fell Tuesday, losing earlier gains, after oil prices settled at a record-high $100.01 a barrel and gold and other commodities spiked, increasing concerns about how inflation will impact an already weakened U.S. economy. Weakness in telecommunication stocks and the latest problems in the banking sector also contributed to the afternoon reversal. The three major indexes gained through the mid-afternoon, but lost most of that advance as crude-oil prices rose amid continuing worries about potential OPEC production cuts and the effects of a Texas refinery fire. Exxon, ConocoPhillips, and Chevron were among oil stocks rising in the session, following a surge of $4.51 a barrel in crude prices. The contract for March delivery briefly hit $100.10 a barrel during the session. Problems continued in the banking sector. Lehman Brothers fell 2.5 percent following a report that the brokerage could face considerable loses due to its exposure to bad mortgage bets. Credit Suisse Group fell nearly 4 percent after saying it would reduce profits by $1 billion in the first quarter. The Dow Jones industrial average fell 10.99 to 12,337.22. Chevron climbed in its first day of trading as a Dow component. Fellow new Dow component Bank of America declined. Chevron and Bank of America replaced tobacco giant Altria and defense contractor Honeywell in the Dow starting Tuesday. AT&T and Verizon Communications fell after the two companies announced rival unlimited calling plans as investors worried about how the plans would impact profitability. AIG rose 2 percent after a financial publication said the stock, following its recent sell-off, is a bargain. The broader Standard & Poor's 500 index was virtually unchanged, falling 1.21 to 1,348.78. The technology-heavy Nasdaq composite index fell 15.60, or 0.7 percent, to 2,306.20. The New York Stock Exchange composite index rose 52.28 to 9,023.04. The American Stock Exchange composite index rose 2.52 to 3,285.25. And the Russell 2000 index rose 0.82 to 702.34.
