Stocks fall as oil falls sharply

NEW YORK -- Wall Street has ended the day moderately lower -- but recovered a big chunk of a steep early loss as the price of oil tumbled.

Light, sweet crude is down $3.69 at $121.41 a barrel on the New York Mercantile Exchange. Oil fell after Tropical Storm Edouard seemed unlikely to threaten oil and natural gas facilities in the Gulf of Mexico.

That decline eased some of investors' worries about inflation. Wall Street initially sold off after the Commerce Department said an inflation gauge tied to consumer spending rose sharply in June, reflecting higher gasoline prices.

The Dow Jones industrial average is down 42 at the 11,284 level. The Dow was down more than 100 in early trading.