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Stocks fall as oil prices continue decline, Russia's big rate hike fails to halt ruble plunge

Volatility is back on Wall Street. The S&P 500 (^GSPC) and Dow (^DJI) have managed to erase earlier losses as oil prices continue their downward spiral after factory activity in China fell to seven month low in December.

Russia’s ruble also resumed its plunge despite a massive rate hike (17% from 10.5%) by the country’s central bank.

Yahoo Finance Senior Columnist Michael Santoli points out a couple of reasons why capital is fleeing out of a Russia.

“The crash in oil prices has compromised Russia’s official revenues and basically it puts their government budget in some kind of peril; and obviously, the sanctions against Russia dating back from last winter when the invasion of Ukraine happened are really biting.”

Investors also waiting to see whether or not the Federal Reserve will pledge to keep interest rates near zero for a “considerable period of time." The Fed issues their policy decision on Wednesday when they wrap up a two day meeting. 

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Meantime, a sign the housing market recovery remains slow.

The Commerce Department reporting housing starts fell 1.6% to a 1.03 million annualized rate and building permits declined 5.2% in November.

In corporate news.  Boeing (BA) shares helping lend some support to the Dow. The plane manufacturer is increasing its quarterly dividend by 25% and boosting its share buyback to $12 billion.

Related: Boeing gains altitude; Coke fizzles; Talisman Energy soars on Repsol takeover

Coca-Cola (KO) said its profit growth for 2015 will be about the same as this year when adjusted for currency fluctuations.  The 4 to 5 percent increase is below the company's long term target.  In addition, a minority stakeholder is calling for CEO Muhtar Kent to be ousted.

Talisman Energy (TLM) shares shot-up on news Spain's Repsol is buying the Canadian oil producer for more than $8 billion, or $8 a share in cash. The deal will give a boost to Repsol's crude reserves and production. It also comes as oil prices have plummeted, pushing down the market value of oil companies making them more attractive for potential buyers.

Related: Google says shop here, not Amazon!

Google (GOOGL) shares in the spotlight this morning. The online giant may be firing a significant shot across the bow of Amazon (AMZN).  The Wall Street Journal reporting Google is looking into adding a "buy" button for its online shopping service.  That would be similar to Amazon's popular "one-click" ordering plan.  Google is also said to be considering free two-day shipping for products bought through its shopping service for an annual fee-- similar to Amazon Prime.

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