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A late-day spike in oil finally forced the Dow and the Nasdaq to close in bear market territory. A bear market is when stocks fall 20 percent from their all-time high. The Dow dropped 166 points. The S&P 500 fell 23 and the Nasdaq lost 53. The day started off with tempered optimism. Financials were strong on the back of good news out of Europe. And a better-than-expected factory report in the U.S. lifted economic hopes. But the bears shortly took over after two gloomy reads on the jobs market sparked concern ahead of Thursday's key government jobs data. But it was another record for oil that really gave the bears traction. Crude jumped well over $2 as traders ignored an unexpected build in gasoline supplies, focusing instead on a sharp drop in crude inventories. Oil settled at a record $143.57 a barrel. Oil is frightening the stock market, says Milton Ezrati market strategist and chief economist at Lord Abbett. SOUNDBITE: Milton Ezrati, market strategist and chief economist, Lord Abbett (English) saying: "Obviously, it's a weight on the consumer and the producer sector; so it's a threat to the economy's well being and therefore a threat to earnings which is the quintessential support for the stock market." Meantime, General Motors fell to new lows not seen in a half a century. The automaker could face bankruptcy, according to Merrill Lynch, if conditions worsen for the auto sector. GM shares closing down - breaking below $10 a share. Lehman shares rallied on word it will offer stock as an employee retention tool. Shares of the investment bank jumped well over 6 percent. In Europe...a profit at Deutsche Bank was a boost to sentiment, but a shock warning from retail bellwether Marks and Spencer prevailed. The German Dax was little changed. But losses of around 1 percent for Paris and London. Conway Gittens, Reuters