Market Wrap-Up

For the second straight day the stock market posted a significant pullback. Investors sold stocks after a Department of Labor report showed an uptick in inflation and housing data revealed builders were breaking ground on fewer home sites. Also weighing on stocks was another round of concerns about foundering financial-services firms. Traders are still worried about write-downs, possible government bailouts at Freddie Mac and Fannie Mae and capital raising plans. Lehman Brothers and AIG were two stocks that took it on the chin Tuesday.

Meanwhile, oil jumped $2.13 a barrel to $115 and gold jumped $14 an ounce to $820.

The Dow Jones Industrial Average closed down 130 points to 11,349.

Winners

After sliding lower for most of the month, oil and gas industry and materials ETFs managed a decent trading session. The SPDR Select Energy fund climbed 3.2%. The SPDR S&P Metals & Mining fund jumped 2.5%. The United States Gasoline fund ( gained 2.8%.

Losers

Tuesday marked another bad session for housing and financial-services ETFs after starting the week on a down note, too. Traders weighed bottom-fishing against possible write-downs and minimal housing starts and decided the future doesn't look bright. The iShares Dow Jones U.S. Home Construction and the SPDR S&P Homebuilders ETFs, two of the most popular ways to play the housing market, dropped 3.7% and 4.2%, respectively. The SPDR KBW Regional Banking ETF lost 4.4%.

Wednesday's Notebook

Earnings

American Woodmark, Bally Technologies, BJ's Wholesale, Candela, Eaton Vance, Gymboree, Hot Topic, Limited Brands, Phillips-Van Heusen, Regis Corp., Ross Stores, Salesforce.com, Semtech, Suntech Power

Economic Data

7:00a.m. Mortgage Application Survey Refinancing Index: Previous