YAHOO [BRIEFING.COM] : Investor skittishness kept stocks in check before selling pressure gained momentum and sent the major indices tumbling. Ongoing economic weakness and uncertainty surrounding a bailout for automakers weakened equities, while commodities advanced on rising oil prices and a weaker dollar.

The U.S. House of Representatives approved yesterday a $14 billion plan to aid Ford (F 2.90, -0.35), General Motors (GM 4.12, -0.48), and Chrysler, but the plan is encountering resistance in the Senate. Failure to secure Senate support will prolong the process of getting automakers funds, leaving them to continue burning through cash.

Cash burn has been problematic for automakers as they contend with softer sales. Sales are expected to remain pressured as consumers battle job losses. Initial jobless claims for the week ended December 6 increased 58,000 to 573,000. Continuing claims increased to 4.43 million from 4.09 million. Both levels were worse than expected and are similar to what are typically seen in recessions.

In other economic data, the October trade deficit climbed to $57.2 billion from $56.6 billion. According to the data, exports dropped significantly. Exports had been a point of notable strength earlier this year, yet with weakness spreading overseas economic activity will encounter further pressure in the fourth quarter.

Exports have also been challenged by a strengthening dollar, which makes dollar-denominated goods more expensive to foreign buyers. However, the dollar dipped nearly 2% this session, giving way to gains in commodities. In turn, the CRB Commodity Index advanced 4.3% this session.

However, crude was the real gainer, climbing more than 12% for a time. It finished with an advance closer to 9%, around $47.40 per barrel. Oil's gains come on the belief that OPEC will cut production when it meets December 17 as the cartel aims to realign supply with demand.

Softer demand has the International Energy Agency forecasting a drop in global oil demand for 2008, which would be the first time demand has shrunk in 25 years. Assuming economic conditions improve, the IEA expects a slight increase in demand in the back half of 2009.

Oil's advance made energy (-0.4%) a strong performer for much of the session. It gained more than 3% before finishing lower.

Financials (-8.5%) were the worst performers of the session, led lower by the likes of Bank of America (BAC 14.91, -1.78) and JPMorgan Chase (JPM 29.94, -3.58). Financials continue to encounter pressure as investors assess the sector's earnings prospects.

Meanwhile, wholesaler Costco (COST 52.06, -1.63) announced better-than-expected earnings per share results for the latest quarter, and Dow component Procter & Gamble (PG 58.58, -0.54) confirmed its second quarter and fiscal 2009 outlook. Eli Lilly (LLY 35.62, +0.61) reaffirmed its outlook for fiscal 2008, and issued upside guidance for fiscal 2009.

GlaxoSmithKline (GSK 36.08, +0.64) traded higher after receiving unanimous approval from the FDA for the company to market Advair for adult use.  Its strength, along with Lilly's, helped the health care sector (+0.2%) outperform.  Health care was the only sector to close higher.DJ30 -196.33 NASDAQ -57.60 SP500 -25.65 NASDAQ Adv/Vol/Dec 676/2.07 bln/2082 NYSE Adv/Vol/Dec 709/1.47 bln/2420