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Blue chips cut a triple-digit sell-off in half, but worries about corporate profits and record oil prices were still around. The Dow lost 49 points. The S&P 500 lost 11 and the Nasdaq lost 26. United Parcel Service, or UPS, was the latest to issue a profit warning. The package delivery company slashed its quarterly forecast - citing the weakening economy. Morgan Stanley said the dollar amount of its assets that are hard to value rose last quarter. That's a sign more write-downs may be in the works. Meantime, Citigroup is close to selling $12 billion in leveraged loans and bonds to a group of private equity investors. UPS fell nearly 4 percent. Morgan Stanley lost nearly 3 percent. And Citigroup finished little changed. Crude oil surged above $112 a barrel the first time. U.S. crude supplies showed a sharp unexpected drop last week and gasoline supplies fell more than expected. Crude backed off that 112- level but still closed at a record of $110.87 a barrel. Investors fear that record price will further slow the economy. Blue chip manufacturer Caterpillar dropped almost 2 percent. Home improvement retailer Home Depot lost 1.8 percent. General Motors was down 4 percent. Boeing, however, was a big gainer. The aerospace giant is delaying deliveries of its 787 Dreamliner for the third time. But analysts are downplaying the 15-month delay. Jim Corridor covers the aerospace sector for Standard & Poor's. SOUNDBITE: Jim Corridor, airline analyst, Standard & Poor's (English) saying: "We're talking about something that's going to happen a couple of years out anyway. And there's not like there is an alternative. Airbus, obviously, having problems with their large plane as well. Certainly it is poor timing on Boeing's part. It does impact the industry but they certainly have enough time to figure out a way to work around it." Investors agreed - sending Boeing shares up nearly 5 percent. European investors focused on the interest rate picture. The European Central Bank and the Bank of England will announce rate decisions on Thursday. The German Dax fell 50 points, the Paris CAC-40 fell 37 points, and the London FTSE fell only 6 points. Conway Gittens, Reuters COMPANIES MENTIONED: United Parcel Service, Morgan Stanley, Citigroup, Caterpillar, Home Depot, General Motors, Boeing SYMBOLS: UPS, MS, C, CAT, HD, GM, BA