The markets tumbled yesterday as oil futures soared to a new record high - closing above $120 a barrel.

Also yesterday, Microsoft abandoned its takeover bid for Yahoo. Yahoo shares plunged 15 percent. Microsoft was walking away from its $50 billion takeover offer because executives couldn't agree on a price.

Countrywide Financial Corp also tanked after an analyst said that Bank of America Corp. should abandon plans to buy the mortgage lender.

The Fed said the proportion of U.S. banks making it tougher for companies and consumers to borrow approached a record high in the past three months as the credit crunch deepened.

Here's how things start out today:
The Dow starts out at 12,969.
The Nasdaq starts at 2,464.

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