U.S. stocks declined slightly Tuesday while commodities rallied as inflation fears increased as investors continued to digest the Federal Reserve's stimulus plans. The Dow Jones Industrial Average was 37 points, or 0.3%, lower at 11369. Chevron weighed on the Dow with a 1% drop after the energy giant agreed to pay $3.2 billion in cash and assume $1.1 billion in debt to purchase Atlas Energy.

Atlas shareholders will receive $38.25 a share in cash, a premium of 21% over its Monday closing price. Shares of Atlas, which isn't a Dow component, surged 34%. Limiting the drop, Exxon Mobil gained 1.4%. Aluminum giant Alcoa was also strong, up 0.7%, as metals futures climbed. The Nasdaq Composite fell 0.2% to 2575.

The Standard & Poor's 500-stock index shed 0.4% to 1219, with financial and consumer companies leading the drop. Meanwhile, the materials and energy sectors rose because of the gains in commodities as well as the Chevron deal. Gold futures were particularly strong, boosting metals companies as they reached record levels above $1,400 an ounce. Freeport-McMoRan Copper & Gold climbed 2.3%.

European markets

European stocks advanced Tuesday, as investors cheered earnings and outlooks from companies such as Barclays and Hermes International. The Stoxx Europe 600 index closed up 0.6% at 273.46. It hit an intraday high of 274.23, a level not seen since September 2008. London stocks were a case in point, with Randgold Resources Ltd. surging 4.6%.

Mining gains helped London's FTSE 100 index closed up 0.4% at 5,875.19. Shares of Barclays PLC rose 4% after the bank said profit fell in the third quarter owing to higher one time charges and a fall in net interest income and fees, but gave reassurances about its capital position.

In Germany, the DAX 30 index gained 0.6% to 6,787.81, led by shares of Deutsche Post AG, which rose 4.1% after the company swung to a third quarter net profit. In Paris, the CAC 40 index rose 0.8% to 3,945.71, as car maker Renault SA rallied 4.3% and rival PSA Peugeot Citroen rose 3.9%. Shares of Hermes International rallied 7.6% after the luxury-goods maker reported a 31% rise in third quarter sales and lifted its outlook.

Asian markets

Asian markets ended mixed Tuesday with exporters dragging Tokyo lower due to the yen's strength. Japan's Nikkei Stock Average fell 0.4%, South Korea's Kospi Composite was up 0.3%, Hong Kong's Hang Seng Index lost 1.0% and China's Shanghai Composite fell 0.8%.

Tokyo stocks traded lower from the open amid heightened concerns about debt problems in Ireland, Portugal and Spain, which pushed the euro down against the yen earlier in Asia trade.

The Japanese currency also rose against the dollar, hurting exporters across the board. Among exporters, Canon's shares ended down 1.3% and Fanuc was off 1.0%.

The Hong Kong market was lower amid sales of property shares, as investors locked in profits following an 8.1% rise for the Hang Seng Index over the last six trading sessions. Poly Real Estate Group dropped 4.1%, and China Vanke ended 4.0% lower.

Base metals

Base metals closed higher on the London Metal Exchange Tuesday, boosted by strong fundamentals and robust Chinese data. Copper climbed ever closer to its all-time high of $8,940 a metric ton recording an intraday, 28-month high of $8,882/ton while tin hit a fresh record at $27,500/ton.

Sustained inventory drawdowns and supply concerns, coupled with robust Chinese auto sales figures and expectations the world's top metal consumer will announce a strong trade surplus Wednesday, helped to propel the metals higher.

Oil futures settled slightly lower Tuesday, giving up advances from earlier in the day after the dollar reversed course. Nymex crude settled 34 cents lower at 86.74 a barrel. Oil earlier in the session jumped to a fresh two year high of $87.63, but pared those gains after the dollar strengthened.

Gold futures settled at a record well above $1,400 as re-emerging euro zone debt concerns heightened investor desire for a safer place to put their money. The most actively traded gold contract, for December delivery, rose $6.90, or 0.5%, to settle at a record $1,410.10 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract hit an intraday record of $1,424.30.

Newsletter: Subscribe to receive this report daily