U.S. Markets Fail To Hold Early Gains, Finish Lower

New York, NY (AHN) - U.S. markets opened the day higher riding on the coattails of Asian markets, which saw a pop when the Chinese government announced a $586 billion stimulus package. However, the gains were short lived and stocks sold off the majority of the session.

The Dow Jones Industrial average fell 73 points or 0.8 percent. 20 of 30 Dow components finished the day lower.

General Motors weighed most on the Dow, falling 22.9 percent as concerns over the automakers finances continue to swirl. Shares of General Motors closed at a 60-year low on Monday.

The S&P 500 dropped 11 points or 1.2 percent. Eight of 10 major economic sectors finished the session lower.

The financial sector dragged on the S&P, falling 4.4 percent as Goldman Sachs led the way down. Shares of Goldman fell 8.4 percent and were down for the fourth straight session.

Tech was the weakest with the Nasdaq Composite falling 30 points or 1.8 percent. The semiconductor stocks led the way lower as the index dropped 3.9 percent on Monday.

Crude oil rose for a second consecutive session, adding $1.37 a barrel to settle at $62.41.

In corporate news, Circuit City filed for chapter 11 bankruptcy protection as the struggling retailer seeks time to reorganize and reduce expenses.

McDonald's continues to post surprisingly strong sales data as it benefits from its cheap menu. The fast-food chain reported an 8.2 percent rise in October same-store sales worldwide.

Mortgage giant Fannie Mae reported a $29 billion third quarter loss as it took a large charge related to tax-assets. The loss also indicated that the company may tap the TARP program for funding sooner rather than later.

American International Group saw shares rise 8 percent after news hit that the government amended its bailout loan, offering the insurance company better terms and a higher cap to the amount it may borrow.

Tuesday's session is clear of any economic reports but will see quarterly earnings from Tyco International and Liz Claiborne.