Stocks fall on jump in oil, UPS profit warning; investors face concerns about economy

NEW YORK -- Wall Street extended its losses Wednesday as a rise in oil prices and a profit warning from United Parcel Service Inc. raised investors' anxiety about the well-being of the economy.

The surge in oil prices weighed on transportation stocks and contributed to a pessimistic tone in the market. Crude prices jumped following a government report showing U.S. inventories fell by more than expected last week. The rise hurt shares of airline and trucking companies, which have already struggled with high fuel costs.

UPS, the world's largest shipping carrier, pointed to a weaker economy and higher fuel costs in trimming its forecast. Investors earlier this week received reports from aluminum producer Alcoa Inc. and chip maker Advanced Micro Devices Inc. that have made the market uneasy about overall first-quarter results.

According to preliminary calculations, the Dow fell 49.18, or 0.39 percent, to 12,527.26.

Broader stock indicators also declined. The Standard & Poor's 500 index fell 11.05, or 0.81 percent, to 1,354.49, and the Nasdaq composite index declined 26.64, or 1.13 percent, to 2,322.12.

The Russell 2000 index of smaller companies fell 13.54, or 1.90 percent, to 698.38.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 1.21 billion shares compared with 1.2 billion shares traded Tuesday.