U.S. Markets

U.S. stocks pushed lower Tuesday afternoon as hopes for a big solution to Europe's debt crisis waned following the cancellation of a scheduled meeting for European Union finance ministers. The Dow Jones Industrial Average fell 134 points, or 1.1%, to 11779. The losses come after the blue-chip Dow rose more than 400 points over the last three trading days.

The action follows reports that a Wednesday meeting of EU finance officials was scotched, although a scheduled summit among European leaders seeking a way out of the debt crisis is still planned. The meeting cancellation increased concerns about whether Europe will be able to sign off on a plan to recapitalize euro-zone banks, beef up the euro-zone's bailout fund and restructure Greece's debt.

The Standard & Poor's 500-stock index lost 18 points, or 1.4%, to 1236, led lower by financial and consumer discretionary stocks. Each of the index's 10 sectors dropped. The technology-heavy Nasdaq Composite fell 47 points, or 1.8%, to 2652. Shares of 3M led the Dow lower, falling 6.1%, after the conglomerate reported third-quarter earnings and revenue that fell short of expectations.

The company also lowered its full-year outlook, noting a number of its customers reduced inventories in anticipation of slowing demand. 3M lopped nearly 40 points off the price-weighted Dow. Meanwhile, DuPont reversed earlier gains and edged down 1.2%. The chemical company reported better than expected third quarter earnings and revenue. It also increased its full-year earnings outlook.

In economic news, U.S. home prices rose modestly in August from a month earlier, due to seasonal factors. It was the fifth-straight monthly increase, according to the Standard & Poor's/Case-Shiller home-price indexes. But consumer confidence faded this month, with data from the Conference Board reverting back to recessionary levels. The private research group said its consumer-confidence index sank to 39.8 in October from a revised 46.4 in September.

European Markets

European stocks ended in the red Tuesday as investors positioned themselves ahead of Wednesday's EU summit, and following some uninspiring U.S. corporate and macroeconomic releases.

The Stoxx Europe 600 index closed down 0.7% at 240.29. The U.K.'s FTSE 100 index fell 0.4% to 5525.54, France's CAC-40 index ended down 1.4% at 3174.29 and Germany's DAX slipped 0.1% to 6046.75.

With Wednesday's EU summit drawing ever closer, investors were on edge as analysts cautioned that the summit wouldn't be the panacea the markets are hoping for. Stocks were largely range bound in the first half of the session, although disappointing earnings from Novartis weighed on the health-care sector.

Novartis shares fell 3.3% after it launched a job and cost-cutting program and reported a weaker than expected 7.9% rise in third-quarter net profit. The results put pressure on the broader sector, causing the Stoxx Europe 600 health-care index to end down 1.4%. But the afternoon session saw things take a turn for the worse.

Weak earnings from U.S. bellwether 3M weighed on sentiment. The company posted a surprise drop in third quarter earnings and cut its full-year forecasts. As a result, European construction and materials stocks took a hit and the Stoxx Europe 600 index for the sector closed 1.9% lower.

Macroeconomic news out of the U.S. also did little to lift the mood. S&P Case-Shiller data showed house prices are losing momentum, while a drop in U.S. consumer confidence added to the downbeat tone. More confusing euro-zone headlines made for jittery trading. Stocks took a sharp leg down after it emerged that Wednesday's Ecofin meeting had been canceled.

Traders said the move lower was an overreaction, pointing out that it was just the pre-summit meeting being called off. Bank shares weakened, with BNP Paribas and Societe Generale both down 3.8% in Paris, UniCredit down 3.4% in Milan, and Barclays down 3.6% in London. STMicroelectronics dropped nearly 8% after the chip maker reported a steep fall in third-quarter net profit and forecast fourth-quarter revenue below analyst expectations. Oil giant BP was among the top gainers in the FTSE. It rallied 4.4% after reporting a surge in third-quarter net profit.

Asia-Pacific Markets

Chinese stocks gained while most other major Asian equity markets slipped Tuesday, although moves were broadly muted ahead of a crucial announcement on how Europe plans to stem its debt crisis. Hong Kong's Hang Seng Index gained 1.1% to 18968.20, much of it in the final half-hour of trading, while the Shanghai Composite Index rose 1.7% to 2409.67. India's Sensex rose 1.9% to 17254.86.

Japan's Nikkei Stock Average lost 0.9% to 8762.31 and South Korea's Kospi ended down 0.5% at 1888.65. Banks were among notable decliners Tuesday in Tokyo, with Sumitomo Mitsui Financial Group down 1.5%, Mizuho Financial Group dropping 1.8%, and Mitsubishi UFJ Financial Group falling 1.2%.

But Hong Kong-listed banks traded higher, with Industrial & Commercial Bank of China gaining 2.5%, and Agricultural Bank of China extending its previous-session gains by 4.2%.

Some resource shares chalked up gains after upbeat Chinese manufacturing data Monday helped send many commodity prices rising overnight. Hong Kong-listed China Coal Energy rose 5.3%, and Cnooc climbed 5.4%. Sumitomo Metal Mining gained 1.3% in Tokyo, while energy major Inpex rose 1.9%.

Other notable gainers included mainland-China-listed property shares, with real-estate major China Vanke rising 5% in Shenzhen after posting a 32% gain in third-quarter profit despite government measures to cool housing prices. The results appeared to boost some of Vanke's Shanghai-listed peers, with Gemdale up 5.7% and Poly Real Estate Group rising 4.6%. Canon fell 1.8% ahead of its results after the market close, which showed July-September net profit for the Japanese maker of cameras and copiers rose 14.2% from a year earlier.

Commodities

Base metals closed mostly lower on the London Metal Exchange Tuesday following a volatile session that saw copper swing in an almost $400 price range as market players reacted to headlines out of Europe.

At the close, LME three-month copper traded at $7,530 a metric ton, down 1.4% on the day. The metal earlier hit a near five week high at $7,820/ton before slumping to $7,428/ton down 2.7% on the day later in the session. Lead lost the most ground at the close, ending the day at $1,961/ton, down 2.9%.

Nymex crude oil futures settled at their highest levels in nearly three months on strong fund buying spurred by tightening U.S. oil inventories. With U.S. crude stockpiles expected to remain below five-year average levels, investors scrambled into the market to buy up near-term contracts. The flurry pushed U.S. benchmark futures up 8.2% in the past three days and reversed a three-year market structure in which nearby contracts traded at a discount to future contracts.

Light, sweet crude oil for December delivery on the New York Mercantile Exchange settled $1.90, or 2.1%, a barrel higher, at $93.17. That is the highest price since Aug. 2. The December contract settled at a 24-cent premium to the January contract, the largest spread between the two nearby contracts in three years.

Gold futures settled at a one-month high as the precious metal broke ties with riskier assets amid uncertainty over the upcoming European Union summit. Gold's rally gained traction on reports that European financial ministers have canceled a meeting set for Wednesday, though the euro-zone summit remains as scheduled for that day. The most actively traded contract, for December delivery, settled $48.10, or 2.9%, higher at $1,700.40 a troy ounce on the Comex division of the New York Mercantile Exchange.