Stocks fell sharply after a two-session rally as negotiations to avoid deep spending cuts and tax hikes seemed to hit an especially rocky spot. Construction on new homes fell 3% while building permits climbed 3.6% in November. General Motors jumped 6.6% after the auto maker said it would buy 200 million shares of its stock from the U.S. Treasury, part of the government’s plan to sell all of its stake in the firm. Tech sector was weighed down by declining Apple, which shed 1.4% after J.P. Morgan pointed to worries about demand for Apple’s iPhone 5, these concerns appear to be overblown. Oracle climbed 3.7% a day after the co. reported upbeat profit and sales. After the closing bell Bed Bath & Beyond slumped 4.1% following a soft outlook from the housewares retailer, while shares of Jabil Circuit surged 5.8% after better-than-anticipated quarterly results. Implied volatility inched higher on moderate trading volumes.
