The CBOE Volatility Index (.VIX) moved higher after another round of dismal news from the financial industry, disappointing same store sales from Wal Mart (WMT), and a rebound in crude oil conspired to send the major averages sharply lower Thursday. The S&P 500 (.SPX) has given back 24 of its 40-point rally from the two days before. Stocks opened broadly lower after AIG (AIG) reported a hefty loss for the most recent quarter and Wal Mart said July sales rose less than analysts expected. With 20 min. left to trade, AIG and WMT are still the Dow’s biggest losers, down 18.5 percent and 6.2 percent, respectively. Meanwhile, crude oil edged higher and recently traded up $1.40 to $120 a barrel. The spike in crude oil and disappointing stock news seemed enough to quash some of the overzealousness seen in the market during the past two days. In fact, although gold traded down $3.00 to $880.00 an ounce, the flight to safety trade was back in other places. The benchmark ten-year Treasury bond surged more than 1 point, pushing its yield down 113 basis points to 3.95 percent on the day. Meanwhile, VIX is up 1.16 to 21.39 and not far from session highs (21.46) heading into the close. Earnings from Fannie Mae and data on productivity and wholesale inventories due out Friday morning.