Stocks Adrift As Traders Digest Renewed Bullish Calls On Oil

Stocks drifted lower Tuesday as investors digested a slew of economic news in the U.S. and abroad.

A prediction today from Goldman Sachs and Morgan Stanley about oil prices sent crude back near $100 per barrel. Those firms believe oil prices will increase through the rest of the year, which could mean higher prices at the pump.

The Commerce Department said new home sales increased 7.3% last month. The report also said inventory levels were falling while prices were going up.

Aside from the oil call, Goldman lowered its forecast for China's gross domestic product for this year and next due to unexpectedly weak economic data and high oil prices. Goldman now expects China's GDP to be 9.4% down from a prior forecast of 10%. And for 2012, the firm sees 9.2% growth, down from 9.4%.

As for company news, medical equipment maker Medtronic disappointed investors with its growth forecast and shares were down 1.5% on heavy volume.

Shares of AutoZone were up over 6% on stronger than expected results for its third quarter. The company's earnings jumped 12% over last year.

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