Stocks: Tuesday's review

U.S. stocks slid, sending the Standard & Poor’s 500 Index to its first drop in three days, as concern that rising energy costs will hurt the economic recovery overshadowed the fastest manufacturing growth since 2004.
The Institute for Supply Management’s factory index increased to 61.4, the highest since May 2004, from 60.8 in January. Readings greater than 50 signal growth. Estimates of the economists ranged from 58.7 to 63.3, with the median at 61.
Alcoa Inc. and Titanium Metals Corp. fell at least 2.9 percent as crude rose above $99 a barrel amid escalating unrest in the Middle East and northern Africa. Fifth Third Bancorp dropped 5 percent after receiving a subpoena from the Securities and Exchange Commission for information on commercial loans. Carnival Corp. slid 6.3 percent after the chief operating officer of the largest cruise-line operator sold 180,000 shares.
Stocks erased an earlier advance after crude oil extended gains amid concern unrest will spread from Libya to Iran. Oil climbed as much after 1.9 percent as authorities in Iran, the second-largest producer in the Organization of Petroleum Exporting Countries, arrested opposition leaders to derail demonstrations scheduled for today.
Federal Reserve Chairman Ben S. Bernanke, testifying to the Senate Banking Committee in Washington, said the surge in oil probably won’t cause a permanent increase in inflation and repeated that interest rates are likely to stay low. His comments suggest the Fed will stay on course to complete $600 billion of Treasury purchases through June in an effort to suppress borrowing costs and safeguard the economic recovery.